SEC Launches 'Project Crypto' — Here's What It Means For You

The U.S. Securities and Exchange Commission (SEC) has unveiled a new initiative called “Project Crypto” aimed at overhauling securities regulations to adapt to blockchain-based financial systems.

What Happened: SEC Chair Paul Atkins announced the project during a Thursday speech, describing it as a direct follow-up to a report released by the President's Working Group on Wednesday.

The working group includes senior officials such as Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, alongside Atkins himself.

Atkins explained that Project Crypto will be led by Commissioner Hester Peirce and her dedicated task force.

Their mandate is to translate the working group's policy recommendations into actionable rule proposals.

These updates will be focused on issues such as crypto trading, custody, and token distribution.

Importantly, any proposed rules will be opened for public feedback.

Also Read: Robinhood Crypto Trading Volumes Surge In July, But: ‘Still Early In The Bull Cycle,’ Bernstein Says

Why It Matters: The broader goal of the initiative, according to Atkins, is to ensure that the U.S. remains competitive globally as a hub for innovation and capital formation.

He said that transitioning market infrastructure onto blockchain systems offers the potential to streamline processes and expand investor access, while also needing careful regulatory design.

Atkins noted that one of the SEC's tasks will be to establish clear categories for digital assets, such as stablecoins, commodities, or collectibles, based on the underlying economics of each project.

He also emphasized the need to update outdated rules that could hinder the integration of decentralized finance (DeFi) and on-chain tools into regulated markets.

"On-chain systems will play a growing role in the future of our financial markets," Atkins said, "and our regulations must be upgraded to reflect that reality without stifling innovation."

Read Next:

• AI Hallucinations Persist Because Models Can’t Access Real-Time, Verifiable Data, Says Nuklai Founder

Image: Shutterstock