SEC chairman unveils Project Crypto to make US a global leader

Investing.com -- SEC Chairman Paul S. Atkins announced "Project Crypto" on Thursday, a comprehensive initiative aimed at modernizing securities regulations to enable American financial markets to move on-chain and fulfill President Trump’s vision of making the U.S. the "crypto capital of the world."

Speaking at an America First Policy Institute event in Washington D.C., Atkins outlined several key priorities for the SEC under his leadership, including bringing crypto asset distributions back to America, enhancing custody options, facilitating "super-apps," and updating regulations to accommodate on-chain software systems.

"We are at the threshold of a new era in the history of our markets," Atkins said, noting that the initiative would work in tandem with the recently signed GENIUS Act and recommendations from the President’s Working Group on Digital Asset Markets.

Atkins directed SEC staff to draft clear rules for crypto asset distributions, custody, and trading, while considering exemptions and relief measures in the interim. He emphasized that "most crypto assets are not securities" and promised guidelines to help market participants categorize digital assets appropriately.

The chairman also addressed the need for modernized custody requirements, stating that "the right to have self-custody of one’s private property is a core American value" while acknowledging that some investors will continue to rely on registered intermediaries.

A significant focus of Project Crypto is enabling "super-apps" - platforms where securities intermediaries can offer various products and services under one roof with a single license. This would allow broker-dealers to trade non-security crypto assets alongside securities and offer services like staking and lending without requiring multiple licenses.

Atkins further directed staff to update "antiquated" rules to accommodate on-chain software systems, including decentralized finance applications that operate without intermediaries. He suggested potential amendments to Regulation NMS, which he had opposed when it was adopted 20 years ago.

The chairman also proposed an innovation exemption to allow companies to quickly launch new business models that don’t fit neatly within existing regulations, provided they adhere to principles-based conditions that achieve the core aims of securities laws.

"Under my leadership, the SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant," Atkins declared, positioning the initiative as a "generational opportunity" for American leadership in financial innovation.

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