Project Crypto?
Announced by SEC Chair Paul Atkins on July 31, 2025, it marks a major regulatory shift toward accommodating digital assets rather than restricting them .
The initiative is grounded in a recent 160‑page report from the President’s Working Group on Digital Asset Markets (PWG), which provides the strategic blueprint for implementation .
Regulatory Clarity & Token Classification
SEC staff will craft definitions to clearly distinguish securities from non-securities tokens—like stablecoins and collectibles. This includes introducing tailored disclosures, exemptions, and safe harbors for ICOs, airdrops, and network rewards .
Super-App Model
Platforms may be allowed to offer trading, staking, lending, tokenization, and traditional securities all under a single license—streamlining licensing and compliance burdens .
Self‑Custody & Custody Choice
Reinforcing the right to self-custody, Atkins intends to broaden custody provider options and simplify existing rules for digital asset custody .
On‑Chain Integration
Legacy rules will be updated to support on‑chain systems, whether decentralized or operated by intermediaries. This aims to modernize regulation for AMMs, smart contracts, and other blockchain protocols .
Innovation Exemption
A new exemption may be introduced to allow novel business models and issuances to operate before final rules are adopted, provided they meet high-level investor protection standards .
What’s Next?
SEC will issue draft proposed rules and open them to public comment in the coming months.
Congress is simultaneously working on supporting crypto legislation such as the GENIUS Act—already signed into law in mid-July, establishing stablecoin regulatory guardrails—and additional market structure bills .
Market participants should monitor updates closely and prepare strategies to engage with the Crypto Task Force and regulatory process.
