Washington D.C. – The U.S. Securities and Exchange Commission (SEC) is embarking on a significant new initiative, “Project Crypto,” aimed at creating a clear and modernized regulatory framework for cryptocurrencies. SEC Commissioner Paul Atkins announced the effort today, outlining a comprehensive plan to address the launch of new tokens, safeguard investors, and integrate blockchain technology within existing financial laws.
In a Fox Business exclusive, Atkins articulated a bold vision for the project: “It [Project Crypto] is to modernize rules and regulations, enabling America’s financial markets to move on chain and make America the crypto capital of the world.” He firmly stated, “The SEC will not stand by and watch innovations develop overseas, that it’s going to happen here.”
This initiative signals a pivotal shift from the SEC’s previously more cautious stance to a proactive approach designed to encourage growth in the digital asset sector. The agency is mobilizing all its divisions to implement recommendations from the President’s Working Group on Digital Assets, which recently provided a report with clear steps to realize the administration’s vision for digital finance. The overarching goal is to make the United States a more attractive and welcoming environment for the crypto industry.
A core component of Project Crypto involves updating financial rules that have been in place for nearly 90 years to accommodate the unique nature of digital assets. Atkins highlighted the critical need for secure custody of these assets, emphasizing they “shouldn’t just be stored on a flash drive in someone’s drawer.” The ultimate aim is to establish stable and predictable regulations, providing clarity for market participants.
The SEC’s new framework will be built upon existing congressional legislation, including the recently passed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This act provides a foundation for regulating stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar.
In his remarks, Atkins also touched on broader trends supporting the growth of alternative financial technologies. He suggested a recent court ruling against the Durbin debit interchange rule could benefit cryptocurrencies as a payment method. Furthermore, he pointed to a recent executive order allowing 401(k) retirement plans to invest in assets like private equity and crypto, underscoring the importance of diversification for investors.
The launch of Project Crypto represents a clear and decisive change in direction for the SEC. By working to create a supportive regulatory environment, the agency is aiming to champion innovation while upholding its mandate to protect investors, positioning the U.S. to lead the evolution of the global crypto landscape.
