SEC to Clarify Crypto Asset Rules Under Project Crypto

The U.S. Securities and Exchange Commission (SEC) is set to introduce clearer regulatory guidelines for crypto asset offerings under its newly announced initiative, “Project Crypto.” SEC Chair Paul Atkins disclosed the plans during a Thursday address, emphasizing a strategic shift to align with President Trump’s vision of U.S. leadership in the global crypto market. The initiative aims to streamline the distribution of digital assets within the U.S., reducing regulatory ambiguities that have historically driven crypto fundraising to offshore jurisdictions [1].

Under the new framework, the SEC will move to eliminate complex offshore corporate structures and what it describes as “decentralization theater.” These structures have been used by crypto issuers to obscure the true nature of their offerings and avoid U.S. securities laws. Atkins stated that such practices have limited American investor access to blockchain-based economic opportunities [1]. The SEC’s revised approach will clarify when a crypto asset qualifies as a security, offering market participants the ability to assess whether an issuer’s commitments trigger investment contract status [1].

Tailored disclosure requirements will apply to transactions that fall under securities laws, covering mechanisms such as initial coin offerings, airdrops, and network rewards. The agency is also considering compliance exemptions in appropriate cases to encourage U.S. participation in digital asset distributions. The goal, according to Atkins, is to provide legal certainty rather than drive American investors away due to regulatory complexity [1].

The reforms mark a departure from the SEC’s previous enforcement-focused strategy. Instead, the agency plans to advance rulemaking through standard public comment periods, ensuring broader stakeholder input. Division of Corporation Finance and Trading and Markets staff will draft initial frameworks in the coming months, with clarity on securities status remaining a central objective [1].

Atkins emphasized that the initiative seeks to bring crypto activities back under U.S. jurisdiction, fostering a more accommodating regulatory environment. Traders and market participants can expect proposed rules to be published in the near future, reflecting the SEC’s commitment to promoting innovation while ensuring investor protection [1].

Source: [1] SEC Prepares Clearer Rules for Crypto Asset Offerings (https://coinmarketcap.com/community/articles/688cea4bc22c28680e9eb76b/)