U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins formally launched “Project Crypto” in Washington, D.C. on July 31, a sweeping regulatory modernization initiative aligned with President Donald Trump's ambition to make America the “crypto capital of the world.” The project aims to provide legal clarity and foster innovation in digital asset markets.
Self-Custody as a Non-Negotiable Right
Atkins emphasized that self-custody of digital assets is 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 said. Project Crypto directs SEC staff to update custody rules for registered intermediaries while ensuring individuals retain the ability to hold their own private keys without interference.
Clear Security Classification Framework
A central pillar of the project is establishing bright-line tests to determine whether a crypto asset constitutes a security. Atkins argued that the majority of crypto assets are not securities, but regulatory confusion has driven innovation offshore. The new framework will provide definitive guidance, reducing enforcement uncertainty and encouraging domestic development.
Super-Apps and On-Chain Integration
Project Crypto also prioritizes enabling “super-apps” – securities intermediaries that can offer a diverse range of products, including non-security crypto assets, under a single federal license without needing multiple state or federal approvals. Atkins instructed staff to rapidly develop guidance to make this a reality. Additionally, the SEC will modernize “archaic” rules to accommodate on-chain software systems in securities markets, including decentralized finance (DeFi), creating room for both intermediated and non-intermediated models.
Collaborative Rulemaking and Legal Foundation
The initiative involves multiple SEC divisions working with a Crypto Task Force led by Commissioner Hester Peirce. Atkins stated the SEC will leverage exemptions and other statutory authorities during the rulemaking process to prevent outdated regulations from hindering innovation. Project Crypto follows the recent enactment of the GENIUS Act, signaling a comprehensive legislative and regulatory push in the digital asset space.