The Securities and Exchange Commission (SEC) is launching Project Crypto to establish clear guidelines for blockchain token issuance, custody, and trading. SEC Chair Paul Atkins has expressed his intention to push forward with regulating blockchain without seeking approval from Congress. He believes that most crypto assets do not fall under the category of securities and is advocating for the advancement of on-chain capital markets. Atkins is a proponent of self-custody and supports the development of “super-apps” that offer a combination of trading, staking, and lending services. The SEC is transitioning from an enforcement-first policy to a rule-by-notice approach, providing a more defined pathway for token distributions. This shift is aimed at offering more certainty and transparency to token issuers, exchanges, and investors. Atkins has initiated Project Crypto with the goal of modernizing markets and hastening the adoption of on-chain capital markets. He envisions establishing clear classifications for tokens, distinguishing between securities, commodities, stablecoins, and other asset types. The SEC will be crafting guidelines and exemptions for token sales, airdrops, and network rewards to bring clarity to the industry. The SEC Chair is advocating for the return of tokenized stocks and funds to the U.S. market, emphasizing the importance of issuing on-chain assets with transparency and simplicity. Atkins is encouraging crypto issuers to operate within the U.S. regulatory framework rather than opting for offshore structures. The SEC’s new approach of notice-and-comment rulemaking aims to provide a more predictable regulatory environment for market participants. Atkins highlights the importance of investor choice in crypto custody, allowing individuals to either self-custody their assets or utilize registered intermediaries. He envisions integrated platforms that offer a range of services under clear regulatory guidance. This shift towards on-chain systems as a core financial infrastructure will involve integrating decentralized finance (DeFi) and decentralized systems into traditional securities markets. This strategic shift in SEC policy aligns with a recent White House report on digital assets, which encouraged regulatory bodies to leverage existing powers to facilitate spot crypto trading and provide safe harbors for emerging tokens. Atkins’s proactive approach to blockchain regulation signals a significant step forward in U.S. crypto oversight, potentially accelerating the adoption of cryptocurrencies in the mainstream financial landscape.
SEC Chair Paul Atkins Unveils Project Crypto to Streamline Blockchain Regulations
