U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins announced the launch of 'Project Crypto' on July 31 in Washington, D.C. The comprehensive initiative aims to overhaul securities regulations to position the United States as the undisputed global hub for cryptocurrency and blockchain innovation. Directly aligned with President Donald Trump's vision of making America the 'crypto capital of the world,' Project Crypto will implement recommendations from the recent President's Working Group (PWG) Report on Digital Asset Markets.
Self-Custody as a Pillar of the Framework
Chairman Atkins stressed that the right to self-custody digital assets is a foundational principle of Project Crypto. '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 stated. He criticized previous SEC approaches for unduly limiting custodial options and pledged to modernize custody requirements for registered intermediaries while explicitly protecting the ability of individuals to hold their own assets. 'Self-custody is a core American value,' he added.
Clarity on Security Classification
A major priority of Project Crypto is establishing clear legal guidelines for determining whether a crypto asset qualifies as a security. Atkins directed SEC staff to develop 'bright-line tests' to replace the current patchwork of enforcement actions and no-action letters. He asserted that most crypto assets are not securities, but regulatory confusion has driven innovation and capital offshore. The initiative will create a transparent framework for crypto asset distributions within the U.S., providing much-needed certainty for issuers, exchanges, and investors.
Super-Apps and On-Chain Innovation
Project Crypto also envisions enabling 'super-apps'—securities intermediaries that can offer a diverse range of products, including non-security crypto assets, under a single license without requiring multiple state or federal approvals. Atkins instructed staff to develop guidance to make this operational. Furthermore, the SEC will update what Atkins called 'archaic' rules to facilitate onchain software systems in securities markets, including decentralized finance (DeFi). The Chairman emphasized that the SEC will create space for both intermediated and non-intermediated models, fostering innovation across the entire digital asset ecosystem.
Cross-Agency Collaboration and Legislative Backdrop
The initiative involves multiple SEC divisions working in tandem with the Crypto Task Force led by Commissioner Hester Peirce, who has long advocated for clearer and more innovation-friendly policies. Atkins stated the SEC will leverage exemptions and other statutory authorities during rulemaking to prevent outdated rules from stifling progress. The announcement follows the recent signing of the GENIUS Act into law, which provides a broader legislative foundation for regulatory reform. Project Crypto represents the most significant effort by the SEC to date to create a coherent and forward-looking regulatory environment for digital assets in the United States.