SEC Launches Crypto Regulatory Overhaul Amid Blockchain Innovation Surge

The U.S. Securities and Exchange Commission (SEC) has initiated “Project Crypto,” a strategic initiative aimed at modernizing U.S. securities regulations to accommodate blockchain-based trading [1]. This move seeks to recognize and regulate tokenized representations of traditional financial instruments like stocks and bonds on public blockchains. SEC Chair Paul Atkins emphasized that the initiative reflects a shift in regulatory thinking, reducing reliance on intermediaries where they are no longer necessary [1]. The development aligns with increasing interest in blockchain asset tokenization by major financial institutions and a recent White House-backed report advocating for U.S. crypto innovation [1].

Coinbase reported second-quarter earnings that fell short of Wall Street expectations, leading to an 11% drop in its shares during after-hours trading [2]. The cryptocurrency exchange generated $1.5 billion in revenue, slightly below the $1.59 billion forecast by analysts. Earnings before interest, taxes, depreciation, and amortization (Ebitda) declined to $512 million from $596 million in the same period the previous year, largely due to a 39% drop in transaction revenue despite rising prices for bitcoin and ether [2].

Tether announced a $4.9 billion profit for Q2 2025, with $3.1 billion from operational income and $1.8 billion attributed to gains from bitcoin and gold [3]. The stablecoin issuer also increased its U.S. Treasury holdings to $127 billion, up from $119 billion in Q1, and added $13.4 billion in new USDT during the quarter, bringing the total supply to over $157 billion [3]. Tether’s total assets now exceed liabilities, reaching $162.6 billion, and the firm has invested $4 billion into U.S.-based ventures in AI and digital infrastructure [3].

Sources:

[1] The Crypto Roundup: 01 August 2025 | CryptoCompare.com (https://www.cryptocompare.com/email-updates/daily/2025/aug/01/)