Bitcoin News Today: SEC Launches Project Crypto to Modernize Digital Asset Regulations

The U.S. Securities and Exchange Commission has launched a major regulatory initiative known as “Project Crypto,” marking a significant pivot in the agency’s approach to digital assets. This effort aims to modernize securities laws, promote the tokenization of real-world assets (RWAs), and provide much-needed clarity for crypto markets. The initiative is being led by SEC Chair Paul Atkins, who has emphasized that most crypto assets should not be classified as securities, a stance that diverges from the enforcement-heavy strategies of recent years [1].

Project Crypto is expected to streamline the regulatory environment for digital assets, encouraging innovation and attracting crypto startups and capital market innovators to the U.S. By working closely with the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, the agency is seeking to implement recommendations from the White House’s Digital Asset Working Group, indicating a unified federal strategy [2]. One of the key objectives is to create clear and straightforward rules for crypto activities such as token distributions, custody, airdrops, and staking rewards. This move aims to reverse the damage caused by previous regulatory uncertainties, which forced many firms to leave the U.S. market [3].

The initiative also seeks to facilitate the development of “Super-Apps,” multifunctional platforms where broker-dealers can offer a range of services—including trading of crypto asset securities and commodities—under a single license. This aligns with recent legislative proposals from the Senate Banking Committee, which advocate for a clearer and more structured crypto market environment. The SEC’s focus on modernizing regulatory frameworks is seen as a necessary step to accommodate innovations like tokenized RWAs and to provide a stable foundation for the industry [4].

In addition to regulatory reforms, the SEC has approved in-kind creation and redemption mechanisms for Bitcoin and Ethereum ETFs, a development that could significantly enhance capital efficiency for market participants. This move is viewed as one of the most important advancements in crypto investing, signaling stronger institutional confidence in digital assets. As of July 28, open interest in Bitcoin options exceeded $57 billion, reflecting increased institutional hedging activity [5].

The regulatory momentum appears to be influencing investor behavior as well. For instance, the iShares Bitcoin Trust ETF has surged by 75% over the past 12 months, closely tracking Bitcoin’s performance. While analysts have made bold price forecasts—some predicting Bitcoin could reach $1.5 million by the end of the decade—these remain speculative and depend on broader adoption and regulatory stability [6].

The growing interest in alternative cryptocurrencies is also evident, with the leveraged XRP ETF, XXRP, recording over $300 million in net inflows. This shift highlights a broader diversification in crypto investing, as investors explore projects with real-world use cases and growth potential [7].

Project Crypto is widely seen as a transformative step that could redefine the U.S. crypto landscape. By clarifying asset classifications, supporting RWAs, and enabling the dual trading of crypto commodities and securities, the initiative may prove to be more impactful than the recent approval of Bitcoin ETFs. The SEC’s efforts are likely to foster a more robust and institutional-grade crypto ecosystem, paving the way for long-term growth and stability [8].

Source:

[1] https://coinmarketcap.com/community/articles/688bb5fba393d9590026da98/

[2] https://medium.com/thecapital/crypto-isnt-dead-its-evolving-d57aab78d770

[3] https://johnlothiannews.com/bitcoin-options-exposure-tops-57-billion-amid-soaring-institutional-hedging-demand/

[4] https://finviz.com/news/120676/this-bitcoin-etf-is-up-75-in-12-months-heres-why-it-can-still-be-a-good-buy

[5] https://www.mitrade.com/au/insights/news/live-news/article-3-998029-20250730

[6] https://www.instagram.com/p/DMvvAyMTvqp/