SEC Launches Project Crypto to Modernize Digital Asset Regulation

The U.S. Securities and Exchange Commission (SEC) has unveiled an initiative dubbed “Project Crypto” to modernize its regulatory approach for digital assets, responding to the evolving demands of 21st-century finance [1]. Announced by SEC Chair Paul Atkins, the project seeks to update the agency’s rulebook, which he described as outdated for on-chain markets and internet-based capital systems. Atkins emphasized that the initiative is a direct response to the recommendations from the President’s Working Group on Digital Assets, a report he called the “blueprint” for sound crypto regulation in the U.S. [1].

Atkins highlighted that many of the SEC’s legacy rules no longer align with modern financial innovation, creating unnecessary barriers for both new and established market participants. The goal of Project Crypto is to eliminate these regulatory obstacles while strengthening enforcement capabilities and ensuring investor protection [1]. The initiative aligns with broader efforts by the Biden administration to provide a clearer and more consistent regulatory framework for digital assets, including a recent White House report that outlined sweeping recommendations for crypto oversight, consumer safeguards, and anti-money laundering strategies [2].

The White House had previously urged Congress to expand a House-approved bill that would restructure the SEC and the Commodity Futures Trading Commission (CFTC) to jointly regulate crypto markets [3]. The initiative reflects this push for inter-agency coordination and legislative reform, signaling a more structured and unified approach to digital asset regulation in the U.S.

Project Crypto is being introduced at a pivotal moment in the crypto space. Recent approvals by the SEC, such as in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs, have marked a turning point in the integration of digital assets into traditional financial systems [5]. However, the sector still grapples with regulatory uncertainty, with critics noting the SEC’s current approach as inconsistent [1]. The new initiative is expected to propose clearer licensing requirements, disclosure standards, and enforcement mechanisms, which could redefine the landscape for crypto firms, financial institutions, and investors [1].

Though the SEC did not reference international regulatory developments in its announcement, the initiative is part of a broader trend in Washington to assert U.S. leadership in the crypto space. The Biden administration has pursued legal actions against major exchanges, including Coinbase and Binance, for alleged regulatory violations [4]. Project Crypto aims to provide a more coherent and enforceable regulatory framework that supports innovation while maintaining financial stability and protecting market participants [2].

Sources:

[1] title1.............................(https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96535991/us-sec-rolls-out-project-crypto-to-rewrite-rul)

[2] title2.............................(https://subscriber.politicopro.com/article/2025/07/white-house-makes-sweeping-recommendations-on-cryptocurrency-tax-policy-00485177)

[3] title3.............................(https://subscriber.politicopro.com/article/2025/07/white-house-to-release-new-crypto-recommendations-in-landmark-report-00484253)

[4] title4.............................(https://www.yahoo.com/news/articles/white-house-set-unveil-closely-100450836.html)

[5] title5.............................(https://www.aol.com/ethereums-rally-driven-fresh-inflows-150617770.html)