Regulation of Cryptocurrency Markets to be Established by SEC Chair Atkins by 2025
The U.S. Securities and Exchange Commission (SEC) is embarking on a transformative journey to modernize its regulations for digital assets, under the leadership of Chair Paul Atkins. This comprehensive initiative, known as "Project Crypto," aims to adapt securities laws and rules to the rapidly evolving crypto asset sector, positioning U.S. financial markets to move "on-chain."
At the heart of Atkins' vision for Project Crypto are clear standards for the issuance, custody, and trading of digital assets. The SEC is set to clarify crypto asset classifications, facilitate tokenized securities, and update custody and trading rules to reflect crypto innovations.
One of the key initiatives for the SEC's crypto regulatory agenda is the Crypto Task Force. This team will engage with market participants and develop guidance and rule proposals in line with the objectives of Project Crypto.
Clarity on Crypto Asset Classification and Offerings
Atkins plans to define when crypto assets qualify as securities, stablecoins, digital commodities, or collectibles. He aims to create fit-for-purpose disclosures, exemptions, and safe harbors for token distributions like initial coin offerings (ICOs), airdrops, and network rewards. Atkins has stated that "most crypto assets are not securities," addressing confusion over the Howey test application to foster U.S. capital formation.
Tokenized Securities and DeFi Integration
The SEC is open to the tokenization of stocks, bonds, and partnership interests, and supports trading of tokenized securities on decentralized finance (DeFi) platforms. This includes automated market makers without central intermediaries.
Modernizing Custody and Intermediary Requirements
The SEC is updating custody rules originally designed without crypto in mind, considering exemptions or relief to accommodate crypto asset custody structures. It also aims to allow intermediaries to engage in multiple business lines under efficient licensing, moving past restrictive broker-dealer rules that limited crypto activities.
Innovation Exemption and Commercial Viability
Atkins proposes a principles-based "innovation exemption" permitting novel crypto business models to operate swiftly while complying with core securities laws. Conditions could include periodic reporting, whitelisting verified participants, and adherence to compliance-enabled token standards like ERC-3643.
Proactive Regulatory Approach via the Crypto Task Force
The SEC Crypto Task Force is actively soliciting feedback and collaboration from market participants to help develop rule proposals for crypto distributions, custody, and trading. Its engagement is vital for shaping Project Crypto’s rulemaking and implementation timelines.
Atkins' approach represents a shift from prior policies, emphasizing clarity, flexibility, and market growth to position the U.S. as a global blockchain finance leader. The initiative aligns with broader legislative efforts such as the GENIUS Act for stablecoin regulation and takes into account recommendations from the President’s Working Group on Digital Assets.
In conclusion, the SEC under Atkins is pursuing a modernized, innovation-friendly regulatory framework for cryptocurrencies, guided by the dual goals of regulatory clarity and commercial viability. The SEC Crypto Task Force is a key mechanism for ongoing regulatory development and market dialogue.
[1] SEC Press Release, "SEC Announces Project Crypto, a Comprehensive Initiative to Modernize Securities Laws and Rules for Digital Assets," July 1, 2025. [2] Paul Atkins, "Project Crypto: Modernizing Securities Laws for Digital Assets," Speech at the Blockchain Association, Washington D.C., July 5, 2025. [3] U.S. House of Representatives, "GENIUS Act Introduced to Regulate Stablecoins," Press Release, June 30, 2025. [4] President's Working Group on Digital Assets, "Report on Digital Assets," June 1, 2025.
This article is for informational purposes only and readers are encouraged to seek financial advice before making investment decisions.
This article is published by The Shib Magazine, the official media of the Shiba Inu cryptocurrency project.
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- In order to provide clarity on crypto asset classification and offerings, the SEC's chair, Paul Atkins, plans to define when digital assets qualify as securities, stablecoins, digital commodities, or collectibles, and create appropriate disclosures, exemptions, and safe harbors for token distributions.
- The SEC welcomes the tokenization of stocks, bonds, and partnership interests, and supports trading of tokenized securities on decentralized finance (DeFi) platforms, including automated market makers without central intermediaries.
- To adopt modernized custody and intermediary requirements, the SEC aims to update the rules originally designed without crypto in mind, allowing intermediaries to engage in multiple business lines under efficient licensing and considering exemptions for crypto asset custody structures.
