SEC Launches Project Crypto to Move Markets Onto Blockchain

The U.S. Securities and Exchange Commission is stepping into the blockchain era with a bold new initiative called Project Crypto. Under Chair Paul Atkins, the agency is aiming to modernize financial markets by bringing core infrastructure like trading, custody, and fundraising onto public and permissioned blockchains. The plan is ambitious, but so is the size of the problem it’s trying to fix.

Atkins Wants to Ditch Outdated Rules

Speaking at the America First Policy Institute, Atkins didn’t hold back. He said it plainly: U.S. markets are stuck using analog-era rules that don’t work for digital assets. With Project Crypto, the SEC wants to build a rulebook that matches how crypto actually works today, not how traditional finance operated 50 years ago. It’s a clear message that regulators are finally starting to meet the industry where it is.

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Sorting Out Which Tokens Are Securities

One of the biggest headaches in the crypto world has always been determining whether a token constitutes a security. Under this new initiative, the SEC will develop clear criteria for that. Atkins believes that most crypto assets should not be automatically labeled as investment contracts. Instead of defaulting to enforcement, the SEC will offer guidance that developers and issuers can follow to avoid ending up in legal hot water.

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Tokenized Stocks and Crypto Super-Apps Get a Green Light

Project Crypto will also support the growth of tokenized financial products—think stocks, funds, and even ETFs issued and traded directly on-chain. These products would operate within licensed platforms that combine custody, trading, lending, and other services under one roof. Atkins suggested this model could remove state-by-state licensing headaches and let the U.S. compete with global financial hubs that already support these innovations.

Making Room for ICOs, Airdrops, and Other Onchain Fundraising

The SEC is also considering new exemptions and safe harbors for common crypto fundraising methods like ICOs and airdrops. If approved, these would give startups more breathing room to raise capital without being buried in red tape. The goal here is to bring token launches back to U.S. soil, rather than pushing them offshore due to legal uncertainty.

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Custody Rules Catch Up to Reality

The way people store and secure digital assets has evolved, and the SEC seems ready to catch up. Project Crypto includes plans to update custody regulations, making space for both self-custody wallets and institutional providers. This could remove a major compliance obstacle for firms looking to serve U.S. investors while using modern security models.

Based on Broader White House Recommendations

This entire effort stems from a larger digital asset policy push out of the White House. A 160-page roadmap laid out key priorities like defining token categories, improving DeFi oversight, and fostering innovation. The SEC is now translating those ideas into practical changes that can reshape how digital assets are treated across the country.

What to Expect Next

The SEC plans to start drafting proposals over the next few months. That could include formal rule changes, new definitions, or even temporary relief for some activities. What’s clear is that Atkins wants this process to move fast, cutting through legacy red tape that has slowed crypto’s growth in the U.S.

A Pivot Away From the Old SEC Playbook

For years, the SEC has leaned hard on enforcement. Project Crypto flips that narrative. Atkins wants the agency to be a guide, not a roadblock. Instead of regulating through lawsuits, the SEC wants to offer real tools and pathways for compliance. That alone marks a serious change in tone.

Project Crypto could be the start of a more balanced approach to digital asset regulation in the U.S. With clearer rules and fewer legal landmines, the crypto industry might finally be able to grow inside the American system instead of around it.

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