The Crypto Project is a new initiative by the SEC of the United States aimed at establishing a modern legal framework for the blockchain and cryptocurrency market, focusing on transparency in on-chain trading, token issuance, and decentralized asset management.
This initiative is expected to alleviate some legal barriers for blockchain; however, the market still reacts cautiously to uncertainties about enforcement and short-term impacts, reflecting in the strong price fluctuations of XRP, SOL, and many other coins.
MAIN CONTENT
The SEC announced the Crypto Project, proposing a new legal framework for the blockchain market in the U.S.
XRP and SOL fell sharply immediately after the announcement due to concerns about the implementation and enforcement process.
The Crypto Project aims to eliminate legal uncertainties, helping the market become more transparent and develop sustainably.
What is the SEC's Crypto Project?
The Crypto Project initiative is a significant effort by the SEC of the United States to update and build new legal regulations suitable for the rapid development of blockchain technology and digital assets.
"The President recently stated that he wants the whole world to operate based on U.S. technology. I am ready to support the completion of this mission. That is why I am launching the Crypto Project..."
Paul Atkins, Chairman of the SEC, speaking at the Digital Finance Revolution event, July 2025, source: sec.gov
The Crypto Project marks the first time the SEC proactively proposes a series of modern legal frameworks directly related to on-chain transactions, digital asset issuance, decentralized custody management, and cryptocurrency market activities. This proactive approach has received positive feedback from developers, businesses, and investors, as it reflects a clear shift from the previously cautious attitude.
The goal of the Crypto Project is not only to update old regulations but also to establish clear, transparent rules regarding transactions, token issuance, airdrops, staking rewards, and the governance activities of the blockchain ecosystem. This helps create a "safe zone" for innovation in the U.S.
Why is the Crypto Project a turning point for the blockchain market?
The Crypto Project is seen by experts as a turning point for the digital asset industry in the face of long-standing legal barriers in the U.S.
"If the blockchain market wants to grow in the U.S., a transparent and understandable legal environment is a vital factor. The Crypto Project can create that change."
James Gorman, CEO of Morgan Stanley, commented in the Crypto Regulation Outlook 2025 report.
Most of the current legal frameworks of the SEC were built for traditional securities decades ago, which are not suitable for the pace of development, technical characteristics, and decentralization of blockchain. The launch of the Crypto Project helps resolve this issue, paving the way for the cryptocurrency market to develop on a clear legal basis.
In addition, the SEC proposed temporary exemptions, safe harbor provisions to allow blockchain development teams to continue operating while the legal framework is being finalized. This minimizes the risk of penalties or prosecution when there are discrepancies between old laws and new realities.
What specific legal changes does the Crypto Project bring?
This initiative proposes regulations related to three main focuses: on-chain transactions, tokenized asset issuance, and decentralized asset custody.
First, decentralized exchanges (DEX) and on-chain trading activities are encouraged to operate more legally thanks to the new rules instead of being ambiguous as before. Next, the issuance of tokens through ICOs, airdrops, and staking rewards will have specific guidelines, definitions, and legal standards, creating professionalism in the digital asset market.
For decentralized asset custody services on blockchain, the SEC will clarify business conditions, protect partner interests, and establish new operational standards aligned with technology.
What benefits does blockchain technology gain from this project?
Thanks to the transparent legal framework, blockchain will attract larger investment flows from traditional financial institutions and asset management organizations.
"When there is a clear legal framework, corporations, banks, and asset management organizations will be more willing to enter the blockchain market instead of standing outside as before."
Elaine Wang, head of global cryptocurrency market research at Glassnode, July 2025
Experts predict that when the Crypto Project is officially applied, not only the domestic market but also cross-border capital flows will shift strongly into the U.S. blockchain market, helping to boost growth in both scale and diversity of DeFi products.
From a technological perspective, legal clarity helps startups and blockchain development teams focus on product innovation rather than spending resources on compliance issues, minimizing the risk of sudden operational halts.
Why did XRP's price drop sharply after the Crypto Project announcement?
XRP, one of the largest tokens in the market, recorded a significant drop immediately after the SEC announced the Crypto Project, falling below $3, hitting a low of $2.89 on the hourly chart, according to TradingView at 14:01 on August 1, 2025 (Vietnam time).
Selling pressure surged dramatically with a long red candle along with high trading volume showing signs of active distribution rather than panic selling. RSI plunged deep into the oversold zone (<30) while MACD continued to widen the red band without a reversal signal appearing.
Despite expectations that XRP will benefit long-term from a clear legal framework, many short-term investors chose to lock in profits amid uncertainty regarding the implementation process and the SEC's new level of control, causing XRP's latest price to drop by 3.57%.
What is special about SOL's volatility before the Crypto Project?
SOL, the token of the Solana project, also plummeted sharply following the SEC announcement, dropping from $169.34 to a low of $166.13, then stabilizing around $167.29 at 14:02 on August 1, 2025 (Vietnam time).
The RSI index has now dropped to 26.89 – reflecting an oversold state, while the OBV indicator continues to decline with sustained selling pressure. A large red candle appeared at 8:00 (UTC) – equivalent to 15:00 (Vietnam time) – confirming a negative reaction of profit-taking and minimizing short-term risks for traders.
Source: TradingView
Not only XRP and SOL, but many other large altcoins also experienced a simultaneous price drop, reflecting investors' defensive sentiment in light of uncertainties from the SEC's new enforcement guidelines. Some view this as "good long-term news, short-term risks," with active traders locking in profits after a long-term rise to hedge against volatility.
What does the SEC propose regarding ICOs, airdrops, and staking rewards in the Crypto Project?
The Crypto Project initiative clarifies legal guidelines for Initial Coin Offerings (ICO), airdrops, and staking rewards – topics that have always been controversial regarding legality and accountability.
"Establishing common standards for ICOs, airdrops, and staking rewards will alleviate some of the concerns about 'legal ambiguity', paving the way for blockchain projects to develop sustainably in the U.S."
J.P. Lee, Director of the Blockchain ETF Division, VanEck, commented at the BlockCon 2025 seminar
The SEC is also considering additional criteria for evaluating when a token is a security or simply a utility, thereby allowing developers, investors, and exchanges to be more proactive in planning fundraising, distributing tokens, or recognizing revenue.
Especially with airdrop and staking reward models, the new regulations help prevent the abuse of rampant issuance aimed at price manipulation or mass rug pulls.
How did the market respond to the SEC's Crypto Project?
Immediately after the SEC made the Crypto Project public, the market recorded a significant decline in numerous leading tokens, but the investor sentiment remained defensive, waiting for clearer enforcement guidelines.
Trading volume increased significantly in the direction of profit-taking, mainly from short-term investors and active traders. However, large institutions and long-term investor groups maintained a watchful stance, viewing the Crypto Project as a driving force for long-term innovation.
Many experts warn that investors need to be patient with the process of "digesting information" from the market, as the legal framework, while necessary, is very complex in terms of construction, implementation, and oversight.
What risks still exist when the Crypto Project is implemented?
Although the Crypto Project initiative opens up positive expectations for the blockchain market, there are still many risks regarding the timing of actual implementation and consistency in widespread enforcement.
"The biggest challenge is how to translate the new legal framework into specific processes, without overlapping with existing laws but still protecting users and encouraging innovation."
Mary L. Schapiro, former SEC Chair, Future of Regulation seminar, June 2025
The risks of the market are that the SEC's legal guidelines may initially create discord among states, interest groups, or even federal agencies. This process has historically taken a long time with traditional securities regulations, often spanning years to finalize.
Another disadvantage is that if the regulations are too stringent, they will push strong tech startups to countries with more friendly legal frameworks (like Singapore, Switzerland, Dubai), diminishing the U.S.'s competitive advantage in blockchain technology.
How does the Crypto Project affect global competition in blockchain?
As the U.S. leads in implementing transparent regulations for blockchain, its international standing will be reinforced, attracting more significant projects to relocate to this country rather than heading to other "legal havens."
U.S. Criteria (with Crypto Project) Singapore/Switzerland Legal framework for DEX Waiting for Crypto Project guidelines, draft supporting the market Fully supported, simplified procedures Exemptions for blockchain startups Safe harbor expected to be widely applied Good protection for startups, quick licensing procedures Ability to raise capital through ICO Starting to be more transparent and clearer (after Crypto Project) Legal issuance guarantees, flexibility Tax and financial obligations Have adjustments, more transparent after Crypto Project Strong competition, high incentives Ability to access institutional investors Strongly increased after the Crypto Project Legal framework Developed but smaller in scale
The comparison table shows that with the Crypto Project, the U.S. is gradually narrowing the legal gap with global blockchain centers such as Singapore and Switzerland. When these adjustments come into effect, the U.S. market will become a "magnet" attracting top projects, capital, and talent in the blockchain industry.
What forecasts are there for tokens and market prices after the Crypto Project?
Although the prices of XRP, SOL, and many leading tokens dropped sharply immediately after the announcement, experts still believe that the positive effects will become evident again when the legal framework is practically applied within the next 12-18 months.
Many global asset managers believe that once the issues regarding token identification, on-chain transaction management regulations, and asset custody are resolved, institutional investors will return strongly to the cryptocurrency market instead of just being a "high-risk speculative channel" as before.
It is expected that spot market trading, tokenization projects of real assets, and DeFi services will achieve impressive growth as investor confidence rises due to a secure legal framework.
Which groups benefit the most from the Crypto Project?
Technology blockchain startups, decentralized exchanges (DEX), digital asset custody services, NFT projects, DeFi applications, etc., will be the first beneficiaries when the new regulations are applied.
Institutional investors, cryptocurrency fund managers, and international financial groups also have grounds to allocate portfolios into digital assets, according to a report by PwC published in June 2025, reflecting the global asset shift trend from 2025 to 2030.
Especially, small retail investor groups are better protected from fraud risks and rug pulls thanks to the higher enforcement mechanism and transparency requirements for project information.
What is the impact of the Crypto Project in the history of the development of blockchain in the U.S.?
The Crypto Project is a historic initiative as it marks the first time the SEC proactively builds a legal framework alongside technology, rather than just tightening control as in the 2018-2022 period.
This sets the stage for the U.S. blockchain market to catch up with Singapore and Switzerland, allowing major projects to confidently develop products, protecting individual investors, and bringing strong institutional capital back.
If the implementation process is favorable, the Crypto Project has the potential to make the U.S. the world's number one center for blockchain and digital assets from 2025 to 2030.
Frequently Asked Questions
What is the SEC's Crypto Project?
The Crypto Project is the latest initiative by the SEC of the United States aimed at establishing a clear and transparent legal framework for the blockchain market, on-chain transactions, and token issuance.
What benefits does the Crypto Project bring to the blockchain market?
This project helps eliminate legal obstacles, create a transparent environment to attract investment, enhance investor protection, and promote technological innovation in the U.S.
Why did the prices of XRP and SOL drop sharply after the Crypto Project announcement?
Prices fell due to short-term investor concerns about instability when implementing new regulations, with many choosing to lock in profits to avoid short-term volatility.
What does the SEC propose regarding ICO activities and staking rewards?
The SEC will clarify the criteria for classifying tokens, propose guidelines on how to organize ICOs, distribute airdrops, and legally reward staking in a more transparent manner.
Is the Crypto Project difficult to implement?
Real-world implementation faces many challenges regarding timing, legal consensus among states, and the ability to control centralized-flexibly.
Are there other countries with competitive blockchain legal frameworks like the U.S.?
Singapore and Switzerland are currently the most competitive markets with blockchain legal frameworks, transparent and providing better protection for startups compared to the U.S. before the Crypto Project.
Will the Crypto Project turn the U.S. into the world's leading blockchain hub?
If implemented smoothly, the U.S. will become the world's number one blockchain hub thanks to the allure of institutional capital, startups, and reinforced investor confidence.
Source: https://tintucbitcoin.com/xrp-sol-phan-ung-ra-sao-voi-sec/
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