The US Securities and Exchange Commission has unveiled a new initiative aimed at bridging the US financial market with the digital space.
This disclosure came at the America First Policy Institute in Washington, DC, on Thursday. The regulator launched “Project Crypto” to modernize securities law to bring all US financial markets on-chain. This aligns with the vision of US President Donald Trump to make America the “crypto capital of the world.”
Speaking at the event, SEC Chair Paul Atkins outlined several initiatives that would drive this new course, insisting it was the priority of the commission under this leadership. Some of them include updating “antiquated” regulations, facilitating “super apps,” and enhancing crypto custody and trading.
Clear Regulations on Distribution and Custody
During his speech, Atkins directed the SEC Commissioners to prioritize the development of clear regulatory policies that would attract crypto distribution back to America. He noted that America has entered its golden age; hence, the days of pushing innovation offshore have ended.
Interestingly, Atkins stressed that most cryptocurrencies are not securities and promised that the agency would create clear guidelines on digital asset classification. He also noted that the SEC would enhance the tokenization efforts in America, working closely with firms pursuing the distribution of tokenized securities to provide the required support.
Furthermore, the US SEC would also modernize crypto custody and trading rights. According to the Chair Atkins, Americans have the right to self-custody their assets. While existing regulations do not have digital assets in mind, he noted that his administration would make the necessary changes.
US SEC to Facilitate Super Apps and On-Chain Software
Meanwhile, Atkins also disclosed that the SEC would encourage “super apps,” all-in-one platforms where intermediaries offer diverse securities and non-securities products. An example of this super app is the Base App launched by Coinbase to replace the Coinbase Wallet.
Platforms like Robinhood and Kraken have also launched similar products, allowing their users in specific locations to trade securities like tokenized stocks alongside crypto trading and other crypto-related products.
Again, Atkins highlighted the existence of obsolete regulations that guide the industry. To that effect, he has tasked his staff to update outdated laws to accommodate on-chain software systems and DeFi platforms.
Remarkably, the chair noted that these amendments would align with Trump’s vision and the mandate from the White House Digital Asset Working Group. Recall that the group released a 166-page report on Wednesday with recommendations for the US SEC and other regulators on enhancing the existence of blockchain technology innovations in America.