July 31, 2025 — Washington, D.C. — In a landmark move, Securities and Exchange Commission Chair Paul Atkins today unveiled “Project Crypto”, an agency-wide overhaul designed to modernize how digital assets are regulated in the United States. The initiative signals a sharp departure from the enforcement-heavy legacy of the Gensler era, offering a forward-looking framework to bring decentralized finance, tokenized securities, and staking into regulated markets.
Atkins launched the plan during a speech at the America First Policy Institute, positioning Project Crypto as the vehicle to transform U.S. capital markets into the world’s leading blockchain hub, in line with recommendations from the White House and the recently passed GENIUS Act.
Unlike past SEC leadership, which leaned heavily on enforcement to define crypto boundaries, Atkins promotes “innovation with thoughtfulness.” The new agenda empowers digital asset firms by creating explicit rules rather than relying on litigation. Project Crypto includes exploratory rulemaking, interpretive guidance, and regulatory safe harbors.
Key ambitions include:
- Token Classification: Establishing clear standards to determine whether a token qualifies as a security, stablecoin, commodity, or collectible—while affirming that “most crypto assets are not securities.”
- Tokenized Securities: Enabling on-chain trading of registered equities, bonds, and funds via SEC-regulated “super-apps”—platforms offering staking, custody, and trading under a single license.
- ICOs & Airdrops: Developing tailored exemptions and safe harbors for crypto fundraising, allowing U.S. participation in token distributions with legal clarity.
- Custody Reform: Modernizing custody rules to accommodate self-custody wallets and institutional custody arrangements, removing outdated mandates like SAB 121.
Atkins framed Project Crypto as the SEC’s vehicle to implement recommendations from the President’s Working Group on Digital Asset Markets. The previously released 160-page White House policy document called for clearer stablecoin regulation, improved crypto infrastructure, and strategic support for blockchain innovation.
Meanwhile, the recently passed GENIUS Act—which mandates reserve backing for payment stablecoins—complements the SEC’s roadmap, creating a multi-agency effort to modernize America’s digital asset policy.
- U.S. as Crypto Capital
Atkins emphasized repatriating crypto innovation—and attracting projects that fled regulatory uncertainty overseas—by offering clear, adaptable pathways. Innovation is meant to thrive on U.S. soil. - Regulatory Clarity Spurs Capital Formation
With guidance on token offerings and custody, startups could once again pursue tokenized fundraising without legal ambiguity—changing the dynamic for U.S.-based blockchain projects. - Integration Not Exclusion
Project Crypto is not about segregating crypto from traditional finance—it’s about merging them. Tokenized securities, staking, and lending could exist alongside investment-grade instruments in regulated venues. - A Tone Shift at the SEC
After years of litigation against exchanges, the message now from Atkins is one of partnership. Instead of lawsuits, the SEC offers rulemaking, safe harbors, and regulatory coordination.
Markets reacted rapidly: Bitcoin and Ethereum rallied, crypto equities gained, and tokenized investing platforms started drawing renewed attention. Industry insiders welcomed the news as a long-awaited rebalancing of regulatory posture.
Still, skepticism persists. Some consumer advocates caution that shifting too far in favor of innovation may risk investor protection—or encourage repeat boom-bust cycles. Critics demand transparent rulemaking and oversight to prevent misuse.
- Drafting Begins: Within months, SEC divisions will produce proposals—some based on interpretive letters and exemptive relief, others as formal rulemaking. Public consultation is expected to follow.
- Congress Sync: While SEC moves forward, Congress continues crafting its own crypto legislation—including CLARITY and other frameworks. Coordination will shape how projects reach scale.
- Implementation Pipeline: Platforms, token issuers, and custodians should begin adapting compliance roadmaps, shaking off enforcement-risk symptoms in favor of structured licensing.
With Project Crypto, the SEC—under Paul Atkins—is pivoting toward a rules-based, innovation-friendly regulatory regime. The initiative makes clear that the U.S. wants to lead in blockchain infrastructure, tokenization, and decentralized finance.
Fashioned as both a regulatory reset and a growth engine, Project Crypto offers the promise of legitimizing American crypto innovation. It’s not just policy—it’s a declaration of intent: that digital assets—and the business models they enable—should thrive under U.S. oversight, not away from it.