SEC Pushes Crypto-Friendly Regulatory Overhaul Under Project Crypto

The U.S. Securities and Exchange Commission (SEC) is taking steps to establish a clearer regulatory framework for the cryptocurrency industry, according to Paul Atkins, the current SEC Chair. In recent remarks, Atkins emphasized the need for updated rules to bring certainty to both investors and market participants, a move seen as a potentially bullish development for the crypto sector [2].

Speaking at a public event, Atkins outlined Project Crypto, an initiative designed to modernize decades-old financial regulations to better reflect the realities of digital assets. This effort includes reinterpreting foundational laws such as the Exchange Act and the Investment Company Act in the context of blockchain technology and digital asset custody [2]. Atkins stressed the importance of secure and standardized methods for storing digital assets, warning against the risks of holding them on unsecured devices [2].

The SEC is working across multiple divisions—such as Corporation Finance and Investment Management—to ensure the new framework supports innovation while protecting investors. Atkins said the agency is committed to adapting its approach to the fast-moving nature of the crypto market without compromising its core mission [3].

The regulatory push is also considering the impact of emerging technologies like instant payment systems. Atkins highlighted how a recent court decision in North Dakota, which invalidated the Durbin debit interchange rule, could create opportunities for crypto-based payment solutions to gain wider adoption [2]. The SEC is also assessing how systems like the Federal Reserve’s FedNow could enhance the efficiency and speed of financial transactions.

Atkins also noted the broader policy shifts affecting the financial landscape, including the passage of the GENIUS Act and a presidential executive order allowing 401(k) plans to include private equity and crypto investments. While these developments are viewed as positive, Atkins warned of the importance of investor education and risk management, emphasizing the need for caution in asset allocation [2].

Looking ahead, the SEC is preparing to handle potential high-profile transactions, such as a proposed monetization of the government’s stake in Fannie Mae and Freddie Mac under a Trump administration plan. Should this move proceed, the SEC is positioned to assist in the regulatory process [2].

Atkins’ statements signal a broader shift in the SEC’s approach to digital assets, reflecting a desire to foster innovation while ensuring investor protections. The initiative aligns with recent government efforts to promote blockchain technology and position the U.S. as a global leader in the crypto space [2]. Analysts suggest that clearer rules could attract more institutional capital into the market and boost long-term confidence in digital assets [2].

Source:

[1] (https://subscriber.politicopro.com/article/2025/08/atkins-sec-plots-trading-database-overhaul-new-crypto-rules-00511654)

[2] (https://www.thestreet.com/crypto/policy/live-secs-paul-atkins-discusses-project-crypto)

[3] (https://www.vitallaw.com/news/sec-news-and-speeches-sec-chair-favors-industry-over-investors-better-markets-argues-in-fact-sheet/sld017a61be4123d24ec1b158832b93582a32)