SEC Unveils Project Crypto to Reshape U.S. Digital Finance Landscape

On July 31, 2025, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins delivered a 30-minute speech at the America First Policy Institute, outlining a sweeping overhaul of the regulatory landscape for the cryptocurrency industry. The speech, titled “American Leadership in the Digital Finance Revolution,” was quickly labeled by industry insiders as “the most bullish news for crypto in a decade.”[1]

Atkins introduced a multi-pronged initiative dubbed “Project Crypto,” aimed at positioning the U.S. as a global leader in digital finance. The initiative includes measures to clarify the legal status of crypto assets, encourage innovation, and create an environment that supports entrepreneurship in the U.S. The SEC plans to revise outdated regulations, issue clearer guidelines, and foster regulatory flexibility to allow businesses to operate while the rules evolve.

A key focus of Project Crypto is to facilitate on-chain trading by integrating both securities and non-security tradable assets under a single regulatory framework. This would enable the creation of “super-apps,” platforms where both traditional securities and cryptocurrencies can be traded seamlessly. Atkins emphasized that the SEC would develop interpretative guidance to support this transition while ensuring compliance with federal securities laws.

The initiative also seeks to address longstanding issues that have hindered U.S. participation in the crypto ecosystem. For instance, Americans have often been excluded from airdrops and initial coin offerings (ICOs) due to securities laws. Atkins committed to revising the rules to allow U.S. citizens greater access to these opportunities, reducing legal uncertainty for issuers and participants alike.

Another significant element of Project Crypto involves reshoring crypto businesses that left the U.S. during the previous administration, many of whom cited regulatory hostility and Operation Chokepoint 2.0—alleged coordinated efforts by regulators to restrict access to traditional banking services for crypto firms. Atkins vowed that under his leadership, the SEC would foster a more welcoming environment to encourage companies to return.

To ensure a smooth transition, the SEC will create exemptions allowing both registered and non-registered crypto firms to operate under certain conditions while the regulatory framework is being finalized. These firms will be required to report to the SEC and operate within a defined set of “whitelist” services. This approach aims to balance innovation with investor protection.

Industry professionals responded enthusiastically to the speech. Jeff Park, a crypto commentator, noted that the speech inspired optimism about the future of the industry and technology. Hunter Horsley of Bitwise suggested that crypto was on the verge of becoming a mainstream asset class, with adoption expected to accelerate over the next 12–24 months.

In the following days, the SEC announced plans to hold a series of roundtables to engage with industry stakeholders across the country. These discussions are intended to gather feedback and refine the proposed regulatory strategies.

Despite the optimism, the crypto market remained relatively flat in the immediate aftermath of the speech, influenced by broader macroeconomic factors such as high interest rates and increased tariffs. However, the long-term implications of Project Crypto could reshape the U.S. digital asset landscape, encouraging investment, innovation, and cross-border competitiveness.

The SEC’s shift from a restrictive to a more supportive stance marks a defining moment in the evolution of the U.S. financial system. If implemented as outlined, Project Crypto has the potential to redefine how digital assets are integrated into the broader economy.

Sources:

[1] Project Crypto: SEC’s Bullish Pivot Marks America’s Digital Finance Shakeup — https://coinmarketcap.com/community/articles/688e0967b534031aa86b65d9/