Project Crypto—The Biggest Regulatory Favor
Project Crypto is a SEC-led initiative aimed at creating friendly rules to promote traditional finance on-chain and ensure that the United States leads in the blockchain revolution.
The United States wants to be the "rule maker" and maintain the dollar hegemony:
1. The U.S. Returns to the Center of Crypto Assets
The SEC aims to establish clear regulations to bring token creation, trading, and custody back to the U.S.
In the past, the SEC's oversight was vague, often issuing Wells Notices and driving projects like Uniswap away. Now, the SEC will clarify the definition of "securities," provide exemptions for ICOs and token issuance, allowing American investors to participate.
Key point: Most cryptocurrencies are not securities!
Tokenized stocks and bonds will receive support.
2. Maximum Freedom for Investors
The SEC supports self-custody while enhancing protections for exchanges. It will abolish unfriendly SAB-121 and Operation Chokepoint 2.0, giving startups more room to operate.
Key point: Startups have more freedom.
Investors can freely choose their trading/custody methods.
3. Promoting “Super Apps”
A Super App is a platform that can trade cryptocurrencies, securities, bonds, and more. The SEC will simplify the licensing process, allowing one license to support multiple services.
Key point: Platforms can easily trade various assets.
Small companies can operate with state-level licenses.
4. Recognizing Decentralized Platforms
The SEC previously did not recognize DeFi, but now will create rules for DeFi platforms based on smart contracts and AMMs, updating Reg NMS to include DeFi.
Key point: DeFi gains legal status.
Ensuring the best prices for investors.
5. Innovation First
The SEC promotes an innovation exemption mechanism, allowing startups to quickly launch products without being constrained by outdated regulations.
Key point: Encourages bold innovation and practical products.
6. Favorable Projects + Strategic Layout
Project Crypto is the biggest regulatory favor since 2019; the integration of the financial system on-chain is a foregone conclusion!
Key points: Dollar, U.S. Treasuries, U.S. stocks on-chain: GENIUS Act and Reg NMS updates support this.
Favorable sectors: Tokenized assets, DeFi (Uniswap, Aave), stablecoins (USDC), Super Apps.
Strategic layout: Invest in compliant projects.
Choose technologically strong, community-active DeFi.
Hold long-term and diversify investments.
Project Crypto marks the shift of the U.S. from suppression to embracing blockchain; the on-chain global asset trend is inevitable! LFG!
