In a major shift in U.S. financial policy, SEC Chairman Paul Atkins has unveiled Project Crypto, a bold initiative aimed at fast-tracking pro-crypto reforms under the direction of President Donald Trump. Speaking at the America First Policy Institute, Atkins laid out a clear vision to align securities regulations with the evolving world of blockchain technology and digital assets.
Streamlining Crypto Regulations for Growth and Innovation
Chairman Atkins emphasized the need for simple and clear rules to guide the crypto industry, especially around critical areas like token distribution, trading, and custody. He directed SEC staff to begin drafting new regulations that support the transition of traditional markets to blockchain infrastructure, ensuring innovation is not held back by outdated laws.
A major component of Project Crypto is the redefinition of how digital assets are classified. According to Atkins, most crypto assets should not be considered securities, directly challenging the stance taken by previous SEC leadership. He advocated for more precise guidelines to determine when a digital asset does fall under securities law, aiming to eliminate regulatory gray areas that have stifled industry growth.
Supporting Self-Custody and Crypto Super-Apps
Atkins also voiced strong support for self-custody of digital assets, a key principle in the decentralized finance space. He welcomed the rise of all-in-one crypto platforms—sometimes called “super-apps”—that offer services like trading, lending, and payments under a single regulatory license.
In a significant departure from previous policies, Atkins defended the rights of developers to publish open-source code without fear of regulatory retaliation. He called for a regulatory environment that encourages innovation rather than punishes it, and made it clear that the SEC will work to bring back crypto businesses that left the U.S. due to past enforcement-heavy approaches.
The chairman also pushed for rules that make sense for ICOs, airdrops, and staking rewards, proposing a fit-for-purpose framework that encourages responsible innovation. Importantly, he cautioned against viewing the “security” label as a negative, urging the industry and regulators alike to focus on the underlying function and risk profile of digital assets.
As Project Crypto moves forward, the SEC under Atkins’ leadership appears committed to transforming the U.S. into a global hub for blockchain innovation, creating a welcoming environment for both startups and established players in the digital asset space.
