SEC Launches Crypto Regulatory Overhaul to Boost Innovation and Investor Access

The U.S. Securities and Exchange Commission (SEC) has launched an ambitious regulatory initiative dubbed “Project Crypto” under the leadership of Chairman Paul Atkins, aiming to reposition the United States as the global center for cryptocurrency innovation. Speaking with Fox Business and in other public appearances, Atkins emphasized that the initiative is designed to modernize the regulatory landscape and foster a more transparent and secure environment for digital assets [1].

According to Atkins, the SEC is mobilizing all its departments to align with the project’s goals, particularly in response to the passage of the GENIUS Act, which supports crypto assets and digital payments. He highlighted that the initiative will bring clarity and stability to the crypto market by updating regulations that have not kept pace with technological advancements. “Years of uncertainty and a negative environment for innovative initiatives will end,” Atkins stated [2].

A key focus of the initiative is updating custody rules for crypto assets. Atkins noted that existing regulations for asset custody date back nearly a century and must be adapted for blockchain-based systems. These changes will apply to brokerage firms, portfolio managers, and investment advisors, ensuring that digital assets are safeguarded using modern technology [3].

Atkins also outlined how blockchain-based clearing and instant payment systems can reduce market risks and enhance efficiency. He argued that real-time payment and delivery mechanisms will provide better protection against market shocks and will bring significant benefits to financial systems [4].

The timing of the initiative aligns with broader federal efforts to integrate cryptocurrencies into mainstream financial systems. President Trump’s recent executive order has paved the way for 401(k) retirement plans to include investments in private equity and cryptocurrencies. Atkins emphasized that small investors should have access to the same diversification opportunities as larger funds, though he acknowledged the need for safeguards to manage risks such as high fees and low liquidity [5].

The SEC’s approach under Project Crypto represents a shift from a historically enforcement-focused strategy to one that seeks to balance investor protection with innovation. This reformist stance is expected to redefine the agency’s role in the evolving crypto ecosystem. The upcoming address by Atkins is anticipated to provide further details and signal a strategic move toward collaboration with industry stakeholders [6].

The initiative has already begun to influence market sentiment. Bitcoin prices have risen toward $122,300, nearing previous highs, while related stocks have also seen upward movement [5].

Source:

[1] Yahoo. [https://finance.yahoo.com/news/trumps-sec-chair-says-agency-134256339.html](https://finance.yahoo.com/news/trumps-sec-chair-says-agency-134256339.html)

[2] Coinfomania. [https://coinfomania.com/sec-chair-paul-atkins-launches-project-crypto/](https://coinfomania.com/sec-chair-paul-atkins-launches-project-crypto/)

[3] U.Today. [https://u.today/atkins-says-sec-mobilizing-all-divisions-to-achieve-crypto-dominance](https://u.today/atkins-says-sec-mobilizing-all-divisions-to-achieve-crypto-dominance)

[6] Bitget. [https://www.bitget.com/news/detail/12560604913068](https://www.bitget.com/news/detail/12560604913068)