U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins unveiled 'Project Crypto' on July 31 in Washington, D.C., a sweeping initiative designed to overhaul securities regulations and position the United States as the dominant global hub for cryptocurrency and blockchain innovation. The project is the SEC's direct response to President Donald Trump's vision of making America the 'crypto capital of the world' and will implement recommendations from the recent President's Working Group (PWG) Report on Digital Asset Markets.
Self-Custody as a Core American Value
Atkins directed SEC staff to rapidly develop new rules and guidelines, with key priorities including a clear regulatory framework for crypto asset distributions and bright-line tests to determine whether a crypto asset qualifies as a security. He asserted that most crypto assets are not securities, but past confusion has driven innovation offshore. The chairman pledged to modernize custody requirements for crypto assets held by registered intermediaries, criticizing previous approaches for limiting choice. '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,' Atkins said, emphasizing self-custody as a 'core American value.'
Super-Apps and Onchain Innovation
A third priority under Project Crypto is enabling 'super-apps,' which would allow securities intermediaries to offer diverse products—including non-security crypto assets—under a single license without needing multiple state or federal approvals. Atkins has directed staff to develop guidance to make this a reality. Furthermore, the project aims to update what Atkins called 'archaic' rules to facilitate onchain software systems in securities markets, including decentralized finance (DeFi). The SEC will create space for both intermediated and non-intermediated models, Atkins stated.
Cross-Division Collaboration and Legislative Context
Project Crypto involves multiple SEC divisions working with a Crypto Task Force led by Commissioner Hester Peirce. Atkins said the SEC will consider using exemptions and other authorities during the rulemaking process to prevent outdated regulations from hindering innovation. The initiative follows the recent signing of the GENIUS Act into law, signaling a new phase of systematic U.S. crypto regulation.