SEC to boost US blockchain leadership with Project Crypto

Securities and Exchange Commission (SEC) Chairman Paul Atkins has announced Project Crypto, a new SEC initiative to make the United States the best place in the world for blockchain, digital currency, and digital finance companies to build. The announcement came just one day after the President’s Working Group on Digital Asset Markets released its Recommendations to Strengthen American Leadership in Digital Financial Technology report.

Both announcements are part of a broader push by the current administration to strengthen the blockchain and digital asset industry in America by establishing the proper infrastructure and eliminating or updating policies that previously restricted its growth.

The 5 key initiatives of Project Crypto

What Atkins called Project Crypto is built around five major policy changes, which he discussed in his “American Leadership in the Digital Finance Revolution” speech. Ultimately, the goal of Project Crypto is to give U.S.-based digital asset businesses the clarity, tools, and regulatory support they need to innovate without fear of prosecution.

First, the SEC wants to create clear rules that tell founders exactly when a digital asset is or isn’t a security. Second, the SEC is pushing for tokenization, specifically, tokenized stocks and bonds. In his speech, Atkins mentioned changing existing regulations to make on-chain trading of tokenized securities possible in the United States. Third, they’re looking to fix outdated custody rules so that individuals can safely self-custody their assets, and firms can offer custodial services for digital currencies and stablecoins without regulatory ambiguity.

Fourth, the SEC wants to make it possible for companies to build “super-apps,” platforms that combine trading, staking, lending, and more while operating under just one license to do business, rather than forcing businesses to navigate unique regimes and licensing requirements that differ across states. Lastly, for startups with innovative business models that don’t fit neatly into existing categories, the Commission says it is open to making “innovation exemptions,” which essentially means that the government will give companies that meet certain criteria a fast-track to launching without requiring them to comply with complex regulations that they would otherwise need to navigate before launching.

If fully executed, Project Crypto should significantly help digital asset companies operate out of America and grow without the red tape and fear of prosecution that previously plagued the industry. This directly aligns with the Trump administration’s increasingly pro-crypto stance.

The political backdrop behind Project Crypto

That means more than just defining whether a coin is a security. It also means making it easier to run a crypto business with just one license that allows a company to operate nationwide. This could open the door for financial institutions and accredited investors to finally participate or play a role in the crypto industry, something they’ve been hesitant to do until now because of unclear regulations.

Can the SEC actually pull off Project Crypto

Of course, no government initiative is without hurdles. The biggest challenge with Project Crypto will be its associated timelines.

It’s unclear how long it will take for these ideas to translate into enforceable rules or legislation. In a best-case scenario, things move as fast as the GENIUS Act, which made it from announcement to law in just two months and 17 days. In the worst-case scenario, we’re looking at a much slower rollout, with multiple rounds of revisions, comments, and votes before anything concrete happens.

It’s also worth noting that Project Crypto, like most of the Trump-era crypto policy, benefits corporate players and not retail users. Sure, consumers might gain access to more products and services if crypto companies come back to the U.S., but the bigger winner will be the corporates, who can effectively do more business and increase their bottom line.

Regardless, Project Crypto marks a definitive shift in tone and policy. If the SEC follows through, and companies take advantage of this supportive infrastructure, it could spark a new wave of innovation and maybe even bring back some of the talent and capital that left the U.S. for greener pastures over the last decade.

As time passes, we should be able to measure Project Crypto’s effectiveness. If companies that originally went offshore start setting up shop in the U.S. again, or if we see more innovation and experimentation in crypto product offerings, it might be fair to say Project Crypto delivered on its promise.

Watch: Breaking down solutions to blockchain regulation hurdles