On July 31, 2025, Securities and Exchange Commission (SEC) Chairman Paul Atkins unveiled 'Project Crypto', a comprehensive regulatory modernization initiative designed to cement the United States as the global leader in cryptocurrency and blockchain innovation. Speaking in Washington, D.C., Atkins framed the project as the SEC's direct response to President Donald Trump's vision of making America the 'crypto capital of the world.'
Background and Core Objectives
Project Crypto will implement recommendations from the recent President's Working Group (PWG) Report on Digital Asset Markets. Atkins directed SEC staff to swiftly develop new rules and guidelines. Key priorities include establishing a clear regulatory framework for crypto asset distributions within the U.S. and providing bright-line tests to determine whether a crypto asset qualifies as a security. Atkins asserted that most crypto assets are not securities, but previous regulatory confusion has driven innovation offshore, a trend the project aims to reverse.
Self-Custody as a Pillar
A central pillar of Project Crypto is the modernization of custody requirements for crypto assets held by registered intermediaries. Atkins criticized past approaches for limiting investor choice and emphasized that self-custody represents a core American value. 'I believe deeply in the right to use a self-custodial digital wallet to maintain personal crypto assets and participate in onchain activities like staking,' he stated. The SEC will work to ensure that both intermediated and non-intermediated models are supported, giving market participants flexibility.
'Super-Apps' and Licensing Reform
Another priority is enabling 'super-apps'—allowing securities intermediaries to offer a diverse range of products, including non-security crypto assets, under a single license without needing multiple state or federal approvals. Atkins directed staff to develop guidance to make this a reality, which could significantly reduce compliance costs and foster innovation in financial services.
Updating 'Archaic' Rules for DeFi and Onchain Systems
Project Crypto also targets the modernization of outdated regulations to facilitate onchain software systems in securities markets, including decentralized finance (DeFi). Atkins stated the SEC will create space for both intermediated and non-intermediated models, acknowledging that distributed ledger technology can enhance efficiency and transparency. The SEC will consider using exemptions and other authorities during rulemaking to prevent legacy rules from hindering innovation.
Implementation Team and Next Steps
The initiative involves multiple SEC divisions working in coordination with a Crypto Task Force led by Commissioner Hester Peirce. This structure ensures cross-departmental expertise. Project Crypto follows the recent signing of the GENIUS Act into law, signaling a broader shift toward clear, innovation-friendly digital asset regulation in the United States. Atkins concluded that the SEC is committed to balancing investor protection with the need for American leadership in blockchain technology.