SEC Turns the Page with ‘Project Crypto’
In a landmark move, the U.S. Securities and Exchange Commission (SEC) has launched “Project Crypto” an initiative to modernize regulations for the digital finance era. Announced by SEC Chair Paul Atkins, the project is a direct response to the White House’s recent recommendations on how to strengthen America’s role in digital financial technology.
The initiative is designed to replace outdated rules with a new crypto-specific regulatory framework, support innovation, and shift the SEC’s tone away from enforcement and toward structured, pro-growth policies. Atkins said the project will address “legacy rules” that no longer apply to on-chain markets, adding:
Flexible Licensing, Market Clarity, and Room to Innovate
Atkins has proposed a streamlined licensing system that would allow brokerages to offer multiple digital asset types under a single license, eliminating the regulatory patchwork that has historically stifled progress. The plan would also clearly separate cryptocurrencies as commodities from securities, resolving a long-running dispute about asset classification.
Crucially, early-stage crypto projects, ICOs, and decentralized applications would be eligible for regulatory grace periods or exemptions, giving developers more breathing room to build without fear of immediate SEC enforcement. The initiative also explicitly defends the legal right to self-custody, something Atkins argues must be protected under U.S. law to support consumer freedom and decentralization.
SEC’s New Attitude: Clarity Over Crackdowns
Since Paul Atkins assumed leadership, the SEC has moved decisively away from the “regulation-by-enforcement” era that defined its stance during prior administrations. The agency has approved several crypto ETFs, clarified staking rules on proof-of-stake blockchains, and allowed in-kind creations and redemptions for ETFs—making them more attractive to institutions.
This proactive approach marks a significant shift in tone and policy, aligning the agency more closely with how traditional financial instruments are governed while also embracing crypto's unique characteristics. The aim: make the U.S. the leading jurisdiction for digital finance, not one where builders live in fear of regulatory backlash.
Coordinated Strategy: SEC and CFTC to Share Oversight
Project Crypto is also designed to integrate inter-agency cooperation, particularly between the SEC and the Commodity Futures Trading Commission (CFTC). Per the White House’s digital finance report, the CFTC will handle spot crypto markets, while the SEC oversees crypto securities and broader financial disclosures.
The President’s Working Group on Digital Assets had called for a unified, clear market structure, something Atkins said is already being implemented through these reforms. The broader framework will also address stablecoin policy, anti-money laundering, and banking and tax coordination.
Regulatory Reboot Signals New Era for U.S. Crypto
With Project Crypto, the SEC is trying to reposition itself as a modern regulator rather than a bureaucratic obstacle. The strategy appears to be a bold attempt to bridge innovation and compliance, while protecting consumers and boosting U.S. competitiveness in digital asset markets.
Whether this shift can restore industry trust and attract more crypto startups to U.S. shores remains to be seen—but one thing’s clear: the SEC is no longer dragging its feet on crypto.
