Based on the search results, **Project Crypto** is a major regulatory initiative launched by the U.S. Securities and Exchange Commission (SEC) under Chair Paul Atkins to modernize securities rules and position the U.S. as the global leader in cryptocurrency and blockchain innovation. Here are its key aspects:
1. **Core Objectives**:
- Establish America as the "crypto capital of the world" per President Trump's vision .
- Provide regulatory clarity for crypto assets (e.g., distinguishing securities, commodities, and stablecoins) and end confusion around the "Howey test" .
- Reshore crypto businesses that left the U.S. due to prior restrictive policies like "Operation Chokepoint 2.0" .
2. **Key Components**:
- **New Regulatory Framework**: Drafting rules for crypto asset distributions, custody, and trading, including tailored disclosures and "safe harbors" for initial coin offerings (ICOs), airdrops, and staking rewards .
- **Support for Tokenization**: Encouraging tokenized traditional securities (e.g., equities) and enabling blockchain-based capital formation .
- **Innovation Exemption**: A grace period for early-stage projects to test novel technologies without immediate compliance burdens .
- **Custody Modernization**: Protecting self-custody rights while updating rules for third-party custodians .
- **Super-Apps**: Allowing platforms to offer crypto and traditional financial services under a single license .
3. **Driving Forces**:
- Implements recommendations from the **President’s Working Group (PWG) Report** and aligns with the **GENIUS Act** .
- Aims to replace "regulation-by-enforcement" with proactive, bipartisan guidelines to foster competition and on-chain finance (e.g., decentralized trading systems) .
Project Crypto signals a historic shift toward integrating blockchain into U.S. markets, with rulemaking expected in 2025–2026 .
