Quick Read
- The SEC launched ‘Project Crypto’ to modernize U.S. crypto regulations and attract innovation.
- SEC Chair Paul Atkins stated that most crypto tokens are not securities, marking a significant shift.
- The SEC approved a multi-crypto asset ETP, a first of its kind, investing in Bitcoin and Ether.
- ‘Project Crypto’ promotes self-custody, super apps, and decentralized finance (DeFi).
- A dedicated Crypto Task Force will oversee the initiative, aiming to restore U.S. leadership in blockchain.
The U.S. Securities and Exchange Commission (SEC) has recently unveiled a groundbreaking initiative, ‘Project Crypto,’ aimed at modernizing the regulatory framework for cryptocurrencies and blockchain technology. This move comes as part of a broader effort to establish the United States as a global leader in digital finance, aligning with President Trump’s vision of making the country the ‘crypto capital of the world.’ The announcement was made by SEC Chair Paul Atkins on July 31, 2025, during a policy address in Washington, D.C.
SEC’s Changing Stance on Crypto Assets
One of the most striking developments under ‘Project Crypto’ is the SEC’s acknowledgment that most cryptocurrency tokens are not securities. This marks a significant departure from the agency’s previous enforcement-heavy approach, which had led to regulatory uncertainty and driven innovation offshore. According to Atkins, the SEC will now focus on developing clear guidelines to determine whether a crypto asset qualifies as a security, thereby reducing ambiguity for developers and investors alike.
Speaking to CoinTribune, Atkins emphasized the importance of self-custody, calling it a ‘fundamental American right.’ He noted that enabling individuals to hold and manage their own crypto assets in personal wallets aligns with broader goals of financial sovereignty and innovation. The initiative also includes plans to modernize custody rules for digital assets held by registered intermediaries, such as broker-dealers and investment advisers.
Approval of Multi-Crypto Asset ETP
In a related move, the SEC approved the first-ever multi-crypto asset exchange-traded product (ETP) on July 29, 2025. The ETP, which will invest in both Bitcoin and Ether on a spot basis, represents a major milestone in the integration of cryptocurrencies into mainstream financial markets. Until now, the SEC had only permitted single-asset crypto ETPs.
As reported by NatLawReview, the SEC justified its approval by citing the consistency of the ETP with the Securities Exchange Act of 1934. The approval is expected to pave the way for additional multi-crypto ETPs, signaling a shift toward treating crypto assets similarly to traditional financial products.
‘Super Apps’ and Decentralized Finance
Another cornerstone of ‘Project Crypto’ is the promotion of ‘super apps’—platforms that integrate a wide range of financial services under a single regulatory license. These apps will allow broker-dealers to offer both crypto and traditional financial products, including staking and decentralized finance (DeFi) services, without the need for multiple approvals. Atkins has directed SEC staff to develop new guidance to make this model legally viable.
Additionally, the SEC plans to update outdated rules that restrict the use of blockchain-based systems in capital markets. The aim is to create a regulatory environment that accommodates both intermediated and non-intermediated models, thereby enabling decentralized systems like automated market makers to thrive.
Cross-Agency Collaboration and Future Prospects
‘Project Crypto’ is a Commission-wide initiative involving multiple SEC divisions and a dedicated Crypto Task Force led by Commissioner Hester Peirce. The task force will explore exemptions and other mechanisms to ensure outdated regulations do not hinder innovation. The project also aligns with the recently passed GENIUS Act, which lays the groundwork for tech-friendly financial reforms.
As noted by WilmerHale, the initiative represents a significant shift from the SEC’s previous stance under former Chair Gary Gensler. By embracing blockchain technology and creating a more flexible regulatory framework, the SEC aims to attract crypto businesses back to the U.S. and foster a competitive environment in the global digital economy.
*With the launch of ‘Project Crypto,’ the SEC is taking a bold step toward redefining the future of cryptocurrency regulation in the United States. As the initiative unfolds, its impact on both the domestic and global crypto landscape will be closely watched.*