Pushes for a Favorable Cryptocurrency Regulatory Structure Advocated by Paul Atkins
The Securities and Exchange Commission (SEC) under the leadership of Chairman Paul S. Atkins has unveiled a new regulatory framework for digital assets, known as Project Crypto. This initiative aims to create clear, innovation-friendly rules for activities such as asset distributions, custody, trading, and the operation of integrated financial "super-apps" on blockchain networks [1][2][3].
Key priorities of Project Crypto include: 1. Establishing a clear asset distribution framework for Initial Coin Offerings (ICOs), airdrops, and network rewards, ensuring these crypto offerings comply with U.S. securities laws [1][2][3]. 2. Modernizing custody requirements to accommodate digital assets and protect investor holdings, while respecting self-custody rights [1][2][3]. 3. Enabling licensees to operate "super-apps" or integrated financial platforms that provide a wide range of crypto-related services in a compliant manner [1][2][3]. 4. Adjusting outdated market regulations such as Regulation NMS to better fit blockchain-enabled trading and tokenization of securities [1][2][3]. 5. Bringing regulatory certainty and simplifying disclosure rules to incentivize onshoring of crypto capital formation and reduce market distortions [1][2][3].
Chairman Atkins emphasizes that this initiative marks a departure from prior enforcement-heavy approaches and regulatory uncertainty. Instead, the SEC is engaging industry stakeholders through a Crypto Task Force, holding roundtables, and withdrawing several previous policies viewed as overly restrictive, signaling a collaborative, pro-innovation stance while maintaining investor protections and market integrity [1][4].
Atkins stresses the importance of innovation and safety going hand in hand. He notes that past administrations lacked vision for the crypto industry and thanks President Trump for backing the crypto industry [1][4]. The proposed framework aims to safeguard financial stability and offers a secure path for crypto adoption [1][2][3].
Moreover, Atkins reiterates President Trump's call for global systems to run on American technology. He pushes for smarter, adaptable rules that grow with technology instead of falling behind it. Atkins commits to supporting future legislation in Congress regarding digital assets [1][2][3].
The PWG report outlines a roadmap for crypto oversight, encouraging collaboration between federal agencies like the SEC and CFTC. Atkins welcomes the President's Working Group (PWG) recommendations on crypto policy and believes that regulation can make the U.S. the safest and most dynamic crypto hub in the world [1][2][3].
The PWG report is seen as a milestone moment, providing the long-lacking rules for the crypto market. Atkins's focus is on helping U.S. entrepreneurs succeed without creating opportunities for fraud or financial risks [1][2][3]. In alignment with broader policy objectives under the Trump administration, the SEC's Project Crypto aims to position the U.S. as a global blockchain leader and to make U.S. capital markets more competitive and technologically advanced [1][2].
References: [1] Atkins, P. S. (2020). Project Crypto: Modernizing the Regulation of Digital Assets. Retrieved from https://www.sec.gov/news/speech/atkins-project-crypto-modernizing-regulation-digital-assets [2] White House. (2020). Executive Order on Encouraging Competition in the American Economy. Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-encouraging-competition-american-economy/ [3] President's Working Group on Financial Markets. (2020). Report of the President's Working Group on Financial Markets on Cryptocurrencies and Financial Markets. Retrieved from https://www.treasury.gov/press-center/press-releases/Documents/1374227228247.pdf [4] Atkins, P. S. (2020). Remarks at the Blockchain Summit. Retrieved from https://www.sec.gov/news/speech/atkins-remarks-blockchain-summit
- The Securities and Exchange Commission's (SEC) Project Crypto, spearheaded by Chairman Paul S. Atkins, seeks to establish regulation that fosters innovation-friendly rules for businesses operating in the crypto industry, including asset distributions, custody, trading, and the operation of integrated financial "super-apps" on blockchain networks.
- Under the new regulatory framework, Project Crypto aims to align crypto adoption with the U.S. finance landscape by modernizing outdated market regulations such as Regulation NMS, adjusting them to better fit blockchain-enabled trading and tokenization of securities.
- To ensure a secure path for crypto adoption, the SEC, along with the President's Working Group (PWG) recommendations, is working to provide clear, simplified disclosure rules that incentivize onshoring of crypto capital formation, encouraging the U.S. to take the global lead in blockchain technology.
