Bitfinex: SEC Chair launches "Project Crypto" to modernize US crypto rules and boost tokenized finance.

Bitfinex: SEC Chair launches "Project Crypto" to modernize US crypto rules and boost tokenized finance.

The Securities and Exchange Commission (SEC) Chair, Paul Atkins, has announced "Project Crypto," a sweeping regulatory overhaul aimed at modernizing the U.S. financial markets to accommodate blockchain technology and digital assets. This initiative, detailed in a 160-page White House report titled "Strengthening American Leadership in Digital Financial Technology," seeks to position the U.S. as a global leader in digital asset innovation [1].

At the heart of Project Crypto is a push to reclassify most digital assets as non-securities, which will clarify regulatory expectations and reduce compliance burdens [2]. This move is expected to foster innovation by removing ambiguity surrounding custody, registration, and record-keeping requirements. Additionally, the initiative includes streamlining licensing for digital asset firms, allowing brokerages to offer multiple asset classes under a single license, and providing regulatory exemptions or grace periods for early-stage crypto projects [2].

The phased rollout of Project Crypto is designed to minimize disruption and allow for iterative improvements. Pilot programs in securities trading and clearing are set to launch in late 2024, with expansions to banking and derivatives markets by 2025 and 2026, and full on-chain adoption by 2027 [2]. The initiative also includes updated anti-money laundering (AML) standards tailored to digital assets and clear tax guidelines from the Treasury and IRS [2].

Industry leaders have welcomed the initiative. Michael Saylor of MicroStrategy has called for a formal digital asset taxonomy that distinguishes between securities and commodities, arguing that such clarity is essential to attract investment and talent to the U.S. [1]. The initiative supports the recently enacted GENIUS Act, which creates a federal framework for stablecoin issuance and emphasizes private-sector-led innovation over government-issued digital currencies [2].

If implemented effectively, Project Crypto could position the U.S. as the global "crypto capital," attracting investment, talent, and technological advancement. The initiative reflects a strategic vision to balance innovation with investor protection, ensuring the U.S. remains at the forefront of the digital financial revolution [2].

References:
[1] https://www.tradersmagazine.com/featured_articles/sec-launches-project-crypto/
[2] https://ncfacanada.org/u-s-maps-out-plan-to-lead-world-in-crypto/