SEC’s Project Crypto: Transforming U.S. Digital Asset Rules

The U.S. Securities and Exchange Commission (SEC) has launched Project Crypto, a major initiative designed to overhaul digital asset regulation in the United States. Announced by SEC Chairman Paul Atkins and supported by the Trump administration, the program’s goal is to establish the country as a global leader in the crypto economy while offering legal certainty, expanded custodial freedoms, and regulatory support for decentralized solutions. Clear Rules for the Crypto Market Project Crypto will be implemented based on the Presidential Task Force on Digital Markets’ recommendations. The plan involves updating regulations, removing legal uncertainty, and fostering Web3 innovation. One primary focus is revisiting outdated methods for defining and regulating crypto assets. To that end, the SEC will develop clear criteria to classify digital tokens—for example, as securities, digital goods, collectible assets, or stablecoins—to guide both the agency and market participants. “I have directed the Commission staff to draft clear and simple rules of the road for crypto asset distributions, custody, and trading for public notice and comment,” said Atkins. Special emphasis is being placed on building a regulatory framework for token distribution in the U.S., covering ICOs, airdrops, and tokenized shares. The objective is to prevent projects from moving overseas due to legal uncertainty. Freedom of Choice and Superapps The SEC also plans to broaden options for crypto custody and trading, including the recognition of users’ rights to self-custody digital assets in personal wallets. Additionally, Project Crypto is exploring the integration of “superapps”—platforms permitting the trading of cryptocurrencies, tokens, traditional securities, and more under a single license. “Nothing in the federal securities laws prohibits SEC-registered trading venues from listing non-securities on their platforms today, and I have directed the Commission staff to develop further guidance and proposals ultimately to make this “super-app” vision a reality,” Atkins noted. Embracing DeFi and New Business Models To support crypto innovation, the SEC is looking to adapt rules for both centralized and decentralized models, including DeFi protocols and automated market makers. An “innovation exception” is under discussion, proposing that new products be launched with fewer regulatory hurdles if core standards are met. Atkins emphasized the need to focus on practical viability—a departure from rigid adherence to legacy frameworks. Project Crypto builds on the recent GENIUS Act, which set the foundation for stablecoin regulation, and new digital markets legislation is anticipated by 2025. The SEC assures stakeholders that the incoming regulations will not confine the industry but instead unlock the full potential of U.S. digital markets.