SEC Unveils Project Crypto to Make U.S. Global Crypto Capital

The U.S. Securities and Exchange Commission (SEC) has launched a strategic initiative dubbed “Project Crypto,” aiming to reposition the United States as the global capital of cryptocurrency. SEC Chairman Paul Atkins outlined the initiative during a speech at the America First Policy Institute, emphasizing a shift from the regulatory approach of the previous administration and highlighting the need for a more innovation-friendly environment for digital assets. The initiative is part of a broader vision articulated by ial candidate Donald Trump, who had previously pledged to make the U.S. the leading hub for crypto innovation [1].

Project Crypto is designed to address regulatory ambiguities and foster a competitive landscape for blockchain and digital assets. Atkins criticized the previous administration’s “shoot first, ask questions later” approach, which he claimed discouraged domestic innovation and pushed crypto firms overseas. The initiative aims to reverse this trend by creating a regulatory framework that encourages the return of crypto businesses to the U.S. and promotes the development of on-chain financial markets [1].

A key component of Project Crypto involves the modernization of outdated SEC regulations to align with emerging technologies. Atkins highlighted the potential of tokenized markets, describing them as the most significant innovation in capital markets in over a decade. He also called for the integration of on-chain systems into U.S. securities markets and the removal of unnecessary licensing barriers for firms offering combined traditional and crypto services [1].

In parallel, the President’s Work Group on Digital Asset Markets, led by SEC Commissioner Hester Peirce, released a report recommending legislative actions to clarify the regulatory oversight of non-security digital assets. The report suggested that the Commodity Futures Trading Commission (CFTC) should be authorized to regulate spot markets for non-security tokens, addressing current regulatory gaps. Peirce also advocated for the adoption of decentralized finance (DeFi) and the modernization of banking regulations to support digital asset innovation [1].

Despite the optimism surrounding the initiative, the crypto market responded with skepticism. Over $400 million in long positions were liquidated within 24 hours of the announcement, as traders appeared to brace for potential volatility following the Federal Reserve’s monetary policy meeting. The market’s reaction contrasted with the bullish expectations expressed by some analysts, who suggested that the current conditions might represent a favorable entry point for long-term investors [1].

The SEC’s Project Crypto marks a significant departure from the regulatory stance under former chair Gary Gensler, signaling a more accommodative approach to the crypto industry. However, the initiative’s success will depend on the ability of the SEC and Congress to deliver clear, consistent, and forward-looking policies that balance innovation with investor protection [1].

Source: [1] How SEC Project Crypto Will Make U.S. the Crypto Capital of the World (https://solanafloor.com/zh/news/how-sec-project-crypto-us-crypto-capital-world)