Project Crypto to bolster the digital-asset industry

The United States’ Securities and Exchange Commission (SEC) has drafted a set of measures aimed at making the country attractive to digital-asset firms.

Launched by SEC Chair Paul Atkins on July 31, Project Crypto is a commission-wide initiative to modernize securities regulation and move US markets on-chain, aiming to establish the US as the global “crypto capital.”

“Clear and simple rules”

Atkins told Reuters he has asked SEC staff to draft “clear and simple rules of the road” for crypto distributions, custody and trading, while in the meantime, the regulator will consider using interpretative and exemptive authorities to provide regulatory flexibility for crypto issuers, exchanges and other intermediaries before new rules formally come into effect.

Atkins also stressed that most cryptocurrencies are not securities - a designation that requires registration with the SEC along with certain disclosures. For years, crypto firms have tried to avoid that designation that would mean substantial restrictions on trading those assets.

Answering the crypto industry’s concerns

Project Crypto includes several major “pillars”:

• revising rules related to token distributions, custody and crypto trading.
• issuing public drafts and feedback periods for new crypto regulations. 
• clarifying which tokens qualify as securities, commodities, stablecoins or collectibles - cancelling the prior presumption that most are securities. 
• enabling “super-app” platforms that consolidate trading, staking, lending and token services to operate under one license. 
• supporting tokenized securities and Initial Coin Offerings (ICOs) with tailored disclosures and safe harbors. 
• modernizing custody rules to support self-custody and on-chain settlement. 

Industry insiders optimistic

Project Crypto was mainly met by the crypto space with optimism.

According to Nathan Allman, CEO of tokenization firm Ondo Finance, a larger number of companies are likely to feel more comfortable launching crypto-related products in the US. 

“We get asked all the time, like, ‘when can we bring our products to the US?’ And it’s always been a little bit sad. As an American company we have to geofence our products from US users and do everything we can to keep us people out,” he said.

“I think it’s the signal of a start of a major new era for crypto,” added Matt Hougan, chief investment officer at crypto asset manager Bitwise. “It’s a very bullish era. It’s one with reduced risk and increased opportunity.”

A step towards regulatory clarity

Although the full impact of Project Crypto remains to be seen, it’s already clear that the initiative is likely to address the crypto industry’s long-standing demand for regulatory clarity. As a global economic leader and trendsetter, the US is creating a precedent that other countries may follow by introducing clear, structured rules for their respective crypto sectors.

The SEC’s latest move signals that on-chain markets, tokenized assets, and self-custody are no longer fringe concepts - they’re steadily becoming part of mainstream financial infrastructure.

Project Crypto marks one of the most significant regulatory shifts in US crypto policy in recent years. Its long-term implications include new investment pipelines, clearer legal standing for tokenized products and broader institutional participation.

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