PROJECT CRYPTO 20250731
The U.S. Securities and Exchange Commission (SEC) has announced "Project Crypto," a new initiative designed to modernize securities regulations and integrate cryptocurrencies and blockchain-based trading into U.S. financial markets.
The project, led by SEC Chair Paul Atkins, aims to provide clarity and a clear regulatory framework for the digital asset industry.
KEY ASPECTS
Clarifying what constitutes a security: A central goal is to provide clear guidelines for distinguishing between a security and a non-security crypto asset, moving away from a strategy of regulating primarily through enforcement actions.
Creating tailored rules: The SEC plans to draft new rules specifically for crypto asset distribution, custody, and trading, rather than relying on outdated regulations. This includes developing exemptions and safe harbors for activities like Initial Coin Offerings (ICOs) and staking rewards.
Supporting on-chain markets: The initiative seeks to facilitate the tokenization of traditional assets like stocks and bonds, allowing them to be traded on blockchain-based platforms.
Enabling "super-apps": The project aims to reduce regulatory hurdles for companies that want to offer a variety of financial services—including crypto trading, lending, and staking—under a single license, eliminating the need for multiple state and federal licenses.
Upholding self-custody: The SEC has stated its support for the right of individuals to use self-custodial digital wallets to hold their crypto assets.
"Project Crypto" represents a significant shift in the SEC's approach to the digital asset space, moving towards a more innovation-friendly and proactive regulatory stance. It is intended to align with a broader government goal of making the U.S. a leader in the global crypto economy.
OBSERVATIONS
The positive aspects of this kind of development are mentioned by many to the point of attrition, giving the impression all this is "too good to be true".
It would be ideal there was no negative side to it. But the world is to a great extent a zero-sum game. What one wins others lose.
Why not to stop and think How all this will affect prices?
Interest in developing web3 apps will not significantly change from current conditions, but funding projects might either be easier or harder. Greater transparency and legal protection makes investments safer but not more profitable, because the performance of that investment depends on the project itself as usual.
Besides, the incursion of corporate entities in the space, will certainly contribute to lower profit margins as the competition increases.
Of course, dApps and crypto related products will remain a niche market, and which service to use is a matter of choice.
Payment Networks are the ones that would disrupt the most.
Enabling corporations to create/use cryptocurrencies for payments, will allow Meta or Google to create their own currencies, and their market presence might absorb the volume that formerly would have gone to existing blockchains.
These factors should not be ignored
by MAAM_A1©
