US Securities Chair Atkins Introduces "Project Crypto" for Modernizing American Securities Oversight
In July 2025, SEC Chair Paul Atkins unveiled "Project Crypto," a Commission-wide initiative to modernize securities regulation and accommodate digital assets and blockchain technology in the United States. The aim was to provide clear regulatory guidelines and foster innovation in the U.S. crypto market (sources [1],[2],[3]).
Prior to this, there was no mention of "Project Crypto" or similar initiatives in the available 2022 materials. Therefore, as of August 2022, "Project Crypto" had not yet been announced or implemented.
Atkins emphasized the need for market participants to have "maximum choice" in how they custody and trade crypto assets. He also highlighted the importance of enabling decentralized systems, such as automated market makers, which facilitate non-intermediated financial activity.
Atkins outlined a regulatory agenda focused on integrating on-chain software systems into US markets, enabling decentralized finance, and launching a new "innovation exemption." He also called for evaluating the use of Commission authority to permit certain non-security crypto assets to trade on non-registered venues, including state-licensed and CFTC-regulated platforms.
Atkins reaffirmed his strong support for self-custody, calling it a "core American value." He expressed support for crypto asset securities that offer features like voting rights and distributions. Atkins directed SEC staff to develop guidance and proposals to support the super-app model.
Atkins called for allowing market participants to operate across multiple business lines under the most efficient licensing structure possible and expressed support for regulatory flexibility that protects investors without imposing unnecessary burdens.
Project Crypto aims to enable America's financial markets to move on-chain (on blockchain technology). Atkins directed SEC staff to update outdated rules and regulations to support the integration of on-chain software systems into US securities markets.
Atkins concluded by stating that the SEC will work to protect pure publishers of software code, clarify the distinction between intermediated and disintermediated activity, and establish practical rules for intermediaries operating on-chain.
On July 31, 2025, SEC Chairman Paul Atkins announced that "Project Crypto" was a Commission-wide initiative to modernize securities regulation in support of the United States becoming the "crypto capital of the world." Atkins identified enabling "super-apps" as a key priority of his chairmanship, defining them as platforms that allow securities intermediaries to offer a wide range of services under a single license.
Atkins announced that he has directed SEC staff to develop a regulatory framework to bring crypto asset distributions back to the US, providing legal clarity for innovators. The SEC staff is also tasked with proposing tailored disclosures, exemptions, and safe harbor mechanisms for crypto asset securities.
Atkins suggested conditions under the exemption could include periodic reporting, use of whitelisting or "verified pool" functionality, and limitations on tokenized securities that do not comply with standards like ERC-3643. The SEC staff is instructed to draft clear guidelines for determining whether a crypto asset is a security or subject to an investment contract.
Atkins called for a more flexible regulatory posture that prioritizes commercial viability. He directed SEC staff to develop a framework allowing side-by-side trading of crypto asset securities and non-security crypto assets on SEC-regulated platforms. Atkins proposed a new "innovation exemption" to allow novel business models and technologies to enter the market quickly, even if they don't fit neatly within existing SEC rules.
As of August 2022, the status of "Project Crypto" was that it had not yet been announced or implemented. For detailed information on the SEC’s approach to crypto regulation as of August 2022 specifically, it might require searching archives or official SEC releases from that period, which are not covered in the provided search results.
In light of the announcement of "Project Crypto" in July 2025, which aimed to modernize securities regulation and accommodate digital assets, there has been a focus on integrating on-chain software systems into US markets and enabling decentralized finance. The SEC has also proposed a regulatory framework for crypto asset distributions and a new "innovation exemption" to facilitate the entry of novel business models and technologies in finance. However, as of August 2022, "Project Crypto" had not yet been officially announced or implemented.
