SEC Launches Project Crypto to Overhaul Digital Asset Regulation

The U.S. Securities and Exchange Commission (SEC) has launched “Project Crypto,” an initiative aimed at modernizing digital asset regulation and positioning the United States as a global leader in blockchain innovation [1]. Announced by SEC Chair Paul Atkins in July 2025, the program seeks to provide regulatory clarity for digital assets, streamline classification of tokens, and attract blockchain projects back to U.S. shores [2]. The initiative is part of a broader strategy outlined in the President’s Working Group report and is being co-led by Commissioner Hester Peirce [3].

Project Crypto emphasizes the need to distinguish between securities and non-securities within the crypto space, while also introducing an “innovation exemption” to accelerate the entry of new business models into U.S. markets [4]. This regulatory overhaul is expected to benefit U.S.-based blockchain projects, stablecoin issuers, and decentralized finance (DeFi) startups by reducing ambiguity and encouraging innovation [5]. According to Atkins, the goal is to create a legal environment that supports on-chain financial markets and capital formation while ensuring investor protection [6].

The initiative draws parallels to historical U.S. financial milestones, such as the Buttonwood Agreement and the 1960s equity trading digitization, which helped solidify U.S. market leadership [7]. By establishing a clear regulatory framework, the SEC hopes to replicate that success in the blockchain era. This includes potential reforms to crypto asset distributions, custody practices, and tokenized securities [8].

In parallel, the Commodity Futures Trading Commission (CFTC) has launched its own regulatory initiative called “Crypto Sprint,” aimed at enabling spot crypto trading on registered futures exchanges [9]. The CFTC invited industry feedback by August 18 to refine its approach, reflecting a coordinated effort with the SEC to create consistent rules across agencies [10]. These combined efforts signal a shift from enforcement-driven oversight to a more structured and supportive regulatory approach [11].

Project Crypto and the CFTC’s Crypto Sprint highlight the U.S. government’s commitment to shaping a clear and competitive regulatory environment for digital assets. By attracting more blockchain innovation and capital formation within its borders, the U.S. aims to reassert its dominance in the evolving financial technology landscape [12]. The outcomes of these initiatives could significantly influence the future of on-chain markets, tokenization, and DeFi protocols [13].

Sources:

[1] Project Crypto: SEC's Plan to Make America a ... - Mitchell

(https://www.mitchellsandler.com/news/project-crypto-secs-plan-to-make-america-a-crypto-superpower)

[2] SEC Chair Paul Atkins Unveils "Project Crypto," Paving the ... - Bitcoinsensus

(https://www.bitcoinsensus.com/news/regulations/sec-chair-paul-atkins-unveils-project-crypto-paving-way-for-on-chain-markets)

[3] SEC Launches Project Crypto to Overhaul Digital Asset ... - AInvest

(https://www.ainvest.com/news/sec-launches-project-crypto-overhaul-digital-asset-regulation-2508/)

[4] Project Crypto: SEC's Plan to Make America a ... - Mitchell

[5] CFTC and SEC Launch Crypto Sprint to Reform U.S. ... - 99Bitcoins

(https://99bitcoins.com/news/bitcoin-btc/cftc-and-sec-launch-crypto-sprint-to-reform-u-s-regulations/)

[6] Project Crypto: SEC's Plan to Make America a ... - Mitchell

[7] SEC Chief Paul Atkin's Project Crypto Flying Under Radar ... - CoinDesk

(https://www.coindesk.com/markets/2025/08/04/sec-chief-paul-atkin-s-project-crypto-flying-under-radar-amid-market-selloff-bernstein)

[8] SEC Launches Project Crypto to Overhaul Digital Asset ... - AInvest

[9] CFTC Unveils Plan to Enable Spot Crypto Trading on ... - The Crypto Basic

(https://thecryptobasic.com/2025/08/05/cftc-unveils-plan-to-enable-spot-crypto-trading-on-regulated-futures-exchanges/)

[10] CFTC Unveils Plan to Enable Spot Crypto Trading on ... - The Crypto Basic

[11] CFTC Unveils Plan to Enable Spot Crypto Trading on ... - The Crypto Basic

[12] SEC Launches Project Crypto to Overhaul Digital Asset ... - AInvest

[13] CFTC Unveils Plan to Enable Spot Crypto Trading on ... - The Crypto Basic