SEC's Project Crypto: Financial Markets Move 'On Chain'

On July 30–31, 2025, SEC Chairman Paul S. Atkins launched Project Crypto at the America First Policy Institute, signaling a significant regulatory shift to bring U.S. financial markets ‘on chain.’

Project Crypto represents a substantial policy change, easing crypto asset classifications, and potentially reshaping the DeFi economy, with major cryptos like BTC and ETH poised for increased integration and growth.

The SEC launches Project Crypto to integrate digital assets into U.S. financial markets, aiming for regulatory innovation and clarity.

This initiative is expected to modernize U.S. financial infrastructure, offering streamlined regulations and increased institutional adoption of digital assets.

SEC Unveils Project Crypto for Market Modernization

The U.S. Securities and Exchange Commission (SEC) announced Project Crypto, marking a significant shift in regulatory policy to integrate digital assets into financial markets. The initiative was revealed on July 30–31, 2025, aimed at modernizing the existing infrastructure. SEC Announces New Initiatives and Updates in Press Release 2025-30.

Paul S. Atkins, SEC Chairman, spearheads the project with a focus on regulatory modernization and clear token classifications. This approach addresses past confusion regarding crypto asset statuses in financial systems, heralding a new chapter of domestic innovation. In his own words, Atkins said, “We have never been content to follow. We will not watch from the sidelines. We will lead. We will build. And, we will ensure that the next chapter of financial innovation is written right here in America.”

Crypto Assets Accepted as Mortgage Collateral

Project Crypto offers streamlined disclosure requirements potentially enhancing capital formation for startups. The Federal Housing Finance Agency will now accept crypto assets as collateral in mortgage applications, indicating growing institutional adoption within financial sectors.

Expected outcomes include enhanced clarity for Bitcoin and Ethereum users as these assets gain prominence. Regulatory updates may influence the broader DeFi ecosystem, fostering new guidelines for stablecoins and governance tokens like AAVE and COMP. SEC Speech on Digital Finance Revolution by Commissioner Atkins.

Proactive Rulemaking Modeled on Historical Attempts

Past SEC initiatives often led to stricter compliance, whereas Project Crypto is a departure towards proactive rulemaking akin to historical attempts like Operation Chokepoint 2.0, albeit without the preceding regulatory friction.

Kanalcoin experts suggest the SEC’s strategy might catalyze market growth by reducing previous uncertainties. Observers anticipate a greater prevalence of U.S.-based DeFi projects, with new legal frameworks possibly reversing past hesitations.

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