🧭 What Is Project Crypto?

Announced on July 31, 2025, U.S. SEC Chairman Paul Atkins launched “Project Crypto,” promising to modernize the agency’s securities rules to better accommodate digital assets.

It directly responds to recommendations from the President's Working Group on Digital Asset Markets and the GENIUS Act, emphasizing interoperable rules and on-chain capital flows.

🔍 Major Shifts Under the Program

1. **“Most crypto assets are not securities”** — a strict reversal from prior SEC leadership that treated all tokens as securities.

2. Clear categorization of tokens — assets will be classified as commodities, collectibles, stablecoins, etc., based on their economic reality, not just structure.

3. Digital capital formation restored — exemptions for ICOs, airdrops, and token grants, removing red tape that pushed these offerings offshore.

4. On-chain securities enabled — licensing models now allow brokers to offer trading, staking, lending, and tokenized securities all under one roof.

5. Legal recognition of self-custody — Atkins reaffirmed the right to hold assets in private wallets and aims to reform outdated custody laws.

🚀 Why It Matters

This marks a fundamental shift in SEC policy—from enforcement-first to innovation-forward, aligning with the Trump-era crypto agenda.

Market impact: Professionals expect a resurgence in U.S.-based token issuance, including tokenized equities, discussed in livestreams by Atkins himself.

The project sets the stage for broader legislation (e.g. Genius Act, Clarity Act), while presidential endorsements and public-private collaboration signal long-term stability.

📌 What Comes Next

Rule proposals will enter public comment in the months ahead—tailored rules for token distribution, custody, exchanges, and more.

The SEC aims to issue interpretive guidance and temporary exemptions while waiting for legislative changes.

The Crypto Task Force, led by Commissioner Hester Peirce, will work closely with other federal bodies to design practical policy tools.

🌐 Bottom Line

Project Crypto is not just a policy announcement—it signals a tectonic policy shift:

It turns the SEC from adversary to provocateur of innovation.

It aims to bring token sales, staking, and custody protocols back to American soil.

It puts real teeth behind blockchain-based capital markets, turning the U.S. into a global hub for regulated crypto growth.

Expect early drafts soon, token classification guidelines hot on the way, and a new era of regulated token launchpads under SEC oversight.