Binance Blog publishes the latest article exploring the latest trends. The U.S. Securities and Exchange Commission (SEC) launched Project Crypto last week, proposing a forward-looking regulatory framework for digital assets, emphasizing safe harbor periods, functional token classification, custody clarity, and a unified licensing system. This marks a fundamental shift from attempting to apply outdated securities rules to blockchain technology to a tailored, technology-native approach to regulation. The new approach builds on recent bipartisan legislation and a global push for clearer, more modern cryptocurrency regulations. For users and developers, this means that innovation and compliance are no longer at odds. Project Crypto reflects a consensus in Washington: traditional securities laws do not apply to decentralized protocols, tokenized assets, or real-time global platforms. The SEC is moving towards a modular framework, starting from the actual functions of cryptocurrencies and building regulatory clarity around that reality. Chairperson Atkins has instructed staff to explore functional classifications of tokens and potential new mechanisms, such as safe harbors. The proposal also provides updated guidance for custodians, clarifying responsibility boundaries, isolation requirements, and the handling of staking and self-custody, removing long-standing barriers to institutional adoption. Notably, this initiative also introduces the concept of a single license that can cover multiple functions, such as trading, custody, payments, and other financial services. Project Crypto builds on the recent legislative momentum in Congress: it follows the GENIUS Act, which provides a clear legal path for dollar-backed stablecoins and advances market structure legislation in both the House and Senate committees, indicating bipartisan support for digital assets. For developers, safe harbor provisions and functional classifications offer a practical pathway. For institutions, clear custody rules and licensing requirements reduce market entry risks and costs. For users, this means safer platforms, more innovation, and greater confidence. For other jurisdictions, Project Crypto provides a reference point.

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