Key takeaways:
- “Project Crypto” aims to modernise the regulatory framework for cryptoassets in the United States
- A more flexible approach to licensing and clarification of status (securities vs. commodities)
- Temporary exemptions to encourage innovation and prevent startups from leaving the country
- A reform in line with White House recommendations
- The SEC adopts a more collaborative stance in conjunction with the CFTC
- A strategic shift for American competitiveness in digital finance
The U.S. Securities and Exchange Commission (SEC) has announced the launch of its most ambitious initiative to date regarding digital assets: “Project Crypto“. Led by Chairman Paul Atkins, this project aims to fundamentally overhaul the country’s regulatory approach to digital finance.
Following in the footsteps of the recommendations of the President’s Task Force on Digital Assets, this program reflects a clear desire: to make the United States the world capital of blockchain and crypto innovation. Through this project, the SEC seeks to adapt its framework to the realities of the 21st century by providing rules that are clearer, more flexible, and, above all, more compatible with the dynamics of Web3.
Redesigned rules for a changing market
One of the key components of “Project Crypto” concerns the simplification of the licensing system. The objective: to allow platforms to offer a variety of products, including digital assets not classified as financial securities, under a single license, thus avoiding the current administrative burdens.
Another key measure: the clear distinction between financial securities and raw materials (commodities). This separation, long a source of legal ambiguity, is crucial to providing a clear environment for project leaders.
With this in mind, new digital asset classification tests will be introduced to more easily determine whether or not a token falls under the SEC’s regulatory scope.
Encouraging innovation without sacrificing security?
Paul Atkins also advocated for temporary exemptions or grace periods for young projects – particularly early-stage startups, ICOs, or decentralised protocols. The goal is simple: not to stifle innovation through regulatory overzealousness, while maintaining a sufficient level of security for investors.
This approach aligns with a core principle Atkins espouses: innovation should not be penalised due to outdated rules or persistent legal uncertainty. The SEC, therefore, plans to provide a secure, yet flexible, space for innovation to flourish.
One of the most striking points of Atkins’ speech remains his commitment to self-custody of digital assets. He reaffirmed that U.S. citizens must have the right to hold their cryptocurrencies themselves in non-custodial wallets and to participate in on-chain activities such as staking.
“I deeply believe in the right to use a self-custody digital wallet to hold personal crypto assets.” – Paul Atkins
This position radically contrasts with the more paternalistic approach adopted until now and could redefine the relationship between regulators, investors, and decentralised technologies.
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Regulation compatible with super apps and DeFi
“Project Crypto” also aims to pave the way for “super apps“, platforms capable of offering a wide range of financial products, including crypto, under a single regulatory framework.
The SEC aims to modernise the current rules that hinder the adoption of on-chain systems by allowing models with or without intermediaries, whether DeFi protocols, decentralised custody solutions, or automated services. The ambition is clear: to enable the United States to remain competitive in the face of the rise of international crypto hubs.
This major project is not being spearheaded by the SEC alone. It involves several internal divisions, with a central role for the Crypto Task Force led by Commissioner Hester Peirce. Nicknamed “Crypto Mom”, she has long advocated for a more open approach to crypto regulation.
At the same time, the SEC is collaborating closely with the CFTC in a spirit of shared oversight. The CFTC would be given responsibility for spot markets, leaving securities-related matters to the SEC.
This interagency coordination is in line with the guidelines of the President’s July report entitled “Strengthening American Leadership in Digital Financial Technologies”, which calls for comprehensive regulatory clarification, including in the areas of taxation and anti-money laundering.
A project geared toward startups and grassroots innovators
The SEC isn’t limited to large institutions. As part of “Project Crypto”, it has launched a series of nationwide roundtables. The goal: to listen to smaller organisations, often absent from the discussions in Washington.
These meetings, held in cities such as Berkeley, Dallas, Boston, and New York, are open to teams of fewer than 10 employees. They allow early-stage creators, developers, and entrepreneurs to express their needs, obstacles, and visions for an appropriate regulatory framework.
With “Project Crypto“, the SEC is embarking on a strategic shift. From a regulator often perceived as repressive, it is seeking to become a partner in innovation, striving to balance investor protection, legal clarity, and economic dynamism.
But the success of this reform will depend on its concrete implementation. The agency will need to strike a balance between rigour and flexibility, while ensuring close coordination with the CFTC and Congress. The coming months will be decisive in determining whether this dynamic of change will take hold.
In short, “Project Crypto” could well redefine the United States’ place in the global digital economy. By reforming its regulatory approach to digital assets, the SEC is sending a strong signal: the time has come to move away from confrontation and toward co-constructing a more stable, inclusive, and competitive crypto ecosystem.
