Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), announced the launch of the 'Project Crypto' initiative to comprehensively modernize the securities regulatory system in response to the advent of the digital asset era. The initiative aims to provide clear regulatory guidance for the U.S. crypto industry, allowing more innovation to develop under legal protection and strengthening the U.S.'s leadership position in global digital finance competition.
The President's Working Group report promotes regulatory reform.
Paul Atkins stated, 'Project Crypto' directly responds to the White House's cryptocurrency policy report released at the end of July, drafted by the President's Digital Asset Working Group, advocating for a clear market structure, inter-departmental coordination, stablecoin policies, anti-money laundering measures, and banking and tax regulations. According to the report's recommendations, the U.S. will be jointly supervised by the SEC and the Commodity Futures Trading Commission (CFTC) in the future, with the CFTC taking the lead in regulating the spot market.
Atkins emphasizes that these reforms are an extension of President Trump's policy to 'Make Digital Assets Great Again', aiming to reshape the SEC as the gatekeeper of on-chain finance, and to attract back crypto companies that have moved abroad due to unclear regulations, injecting digital vitality into the U.S. capital markets. Paul Atkins emphasized:
'Many of this committee's outdated rules and regulations are no longer suitable for the 21st century—let alone for the on-chain market. The committee must revise its rule system to prevent regulatory moats from hindering innovation and competition, which will ultimately harm the mainstream public interest for both newcomers and existing players.'
Five major reform directions of the SEC 'Project Crypto'
Under the leadership of SEC Chairman Paul Atkins, 'Project Crypto' will become a reform blueprint for the U.S. to establish global leadership in on-chain finance, covering the following five key points:
Establish clear classification and issuance standards for crypto assets. The SEC will set clear guidelines to assist market participants in determining whether crypto assets constitute securities, and provide a safe harbor and exemption framework for ICOs, airdrops, and token rewards, allowing compliant innovation to take place domestically in the United States.
Ensure self-custody and diverse custody options. The SEC commits to reforming outdated custody rules, restoring the freedom for companies and investors to choose self-custody or use intermediaries, and correcting market failures caused by previous policies.
Promote compliance for 'super application' platforms. It advocates allowing regulated trading platforms to offer diverse services such as traditional securities, crypto assets, staking, and lending under a single license, significantly simplifying business compliance costs.
Create regulatory space for DeFi and on-chain software. The SEC will revise outdated rules to clearly distinguish between centralized and decentralized systems, protect developers, and allow financial agreements that do not rely on intermediaries to exist legally in the U.S. market.
Establish an innovation exemption mechanism. A proposed 'innovation exemption' would allow startup projects to quickly enter trial operations under core regulatory principles, avoiding the burdens of traditional regulatory frameworks.
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