SEC Chair Paul Atkins announced ‘Project Crypto’ on July 31, 2025, during a speech, initiating a comprehensive overhaul of U.S. securities regulations for digital assets in the United States.
The overhaul targets modern on-chain financial integration, affecting asset classification, tokenized securities, and DeFi, potentially reshaping institutional investment and digital market dynamics.
The U.S. Securities and Exchange Commission (SEC) has launched Project Crypto under Chair Paul Atkins’ leadership. This initiative aims to revamp securities regulations for on-chain financial integration, addressing areas such as asset classification and tokenized securities. Paul Atkins, Chair, SEC, said, “As I mentioned earlier, today I am announcing the launch of ‘Project Crypto’—a Commission-wide initiative to modernize the securities rules and regulations to enable America’s financial markets to move on-chain.
Paul Atkins of the SEC unveiled the initiative during a speech, emphasizing a need for modernization. The project’s framework targets aspects like custody rules, broker-dealer permissions, and innovation in crypto-assets regulation.
Regulatory Clarity Expected to Boost Institutional Investment
Project Crypto is expected to encourage institutional investments by providing regulatory clarity. The initiative may reshape the U.S. crypto market by enabling easier asset tokenization and promoting new regulatory frameworks for staking services and decentralized finance platforms. The SEC is seeking input to guide the creation of a comprehensive framework.
The regulatory framework aims to reduce compliance friction, thereby attracting capital into digital asset markets. Stakeholder feedback is being actively sought through roundtables, emphasizing the significance of community contribution in shaping the reform process.
Project Crypto Signals Major Shift in Securities Regulation
Similar to the 1960s financial infrastructure reforms, Project Crypto marks a pivotal shift in securities regulations. Past reforms were localized, whereas Project Crypto represents a comprehensive approach targeting the integration of blockchain technology.
Experts from Kanalcoin suggest Project Crypto could bring systemic change, much like previous reforms in U.S. financial markets. Insights based on past actions indicate potential for increased onshore digital asset activities, driving industry growth and innovation.
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