The SEC Chair Paul Atkins has vowed to establish a clear regulatory framework for crypto assets, highlighting this as his top priority to position the U.S. as a global blockchain leader.
The 34th United States Securities and Exchange Commission (SEC) chair, Paul Atkins, noted that the “Project Crypto” initiative aims to modernize outdated securities rules and secure the U.S.’s position as a global leader in blockchain innovation. Atkins announced this on Thursday during a policy address in Washington.
Bringing Clarity to Crypto Regulation
He emphasized the need for “bright-line rules” that allow businesses to determine whether their crypto assets fall under securities laws or other classifications such as digital collectibles, commodities, or stablecoins.
Atkins emphasized that being designated as a security should not be viewed negatively, as it can give investors added benefits such as voting rights and access to distributions.
As part of the reform, the SEC plans to introduce specific disclosures, exemptions, and safe harbors for token offerings, including ICOs, airdrops, and network-based rewards.
Rebuilding Domestic Crypto Markets
The SEC Chair criticized the trend of crypto projects moving offshore to avoid legal uncertainty in the U.S. He said the SEC aims to reverse that by encouraging innovation within American borders.
Furthermore, the SEC plans to support the tokenization of traditional financial instruments, such as stocks and bonds. Atkins revealed that many firms, including Wall Street giants and Silicon Valley tech startups, are ready to enter the U.S. crypto market if regulatory clarity improves.
More Options for Custody and Trading
Meanwhile, another central goal is to expand investor choices for where and how to hold and trade crypto assets. Atkins emphasized the importance of self-custody and directed the SEC staff to modernize custody rules for registered intermediaries.
He also criticized past SEC policies like SAB 121 and “Operation Chokepoint 2.0,” which limited the number of qualified custodial providers. New guidance could offer relief and reduce regulatory friction.
Paving the Way for Super-Apps
Atkins also wants to make it easier for platforms to operate as “super-apps” offering multiple financial services under one regulatory structure.
A broker-dealer, for example, should be able to offer trading in crypto securities, non-security tokens, traditional stocks, lending, and staking, all with a single license. He said the SEC would work with other regulators to streamline licensing and avoid duplicative compliance burdens.
Unlocking On-Chain Innovation
As part of the project crypto, the SEC will also update rules to accommodate decentralized finance (DeFi) and other on-chain software systems. Atkins said both centralized and decentralized protocols should have a place in U.S. markets.
He also suggested revisiting Regulation NMS to enable on-chain trading of tokenized securities, arguing that legacy frameworks should not stifle innovation.
Creating Space for Risk-Taking and New Ideas
Meanwhile, to foster faster innovation, the SEC Chair proposed a new “innovation exemption.” This would allow startups to go to market quickly under principles-based rules rather than rigid regulatory requirements.
Conditions could include regular reporting, use of compliant token standards, and restricted distribution to verified users. The goal is to ensure that business models with economic potential can launch without being blocked by red tape.
Atkins concluded by affirming the SEC’s commitment to transforming U.S. capital markets to accommodate blockchain technology and digital assets. The SEC is expected to release additional guidance and proposals in the coming months as Project Crypto takes shape.
Meanwhile, Atkins had earlier noted that crypto is now firmly part of the U.S. financial system, pointing to President Trump’s signing of the GENIUS Act as a key step toward regulatory clarity. He called it a major shift from past policies and noted that stablecoins could modernize the country’s outdated settlement system.
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