The US Securities and Exchange Commission (SEC) has announced plans to modernise the rules around digital assets and tokenised securities.
The US Securities and Exchange Commission (SEC) has launched “Project Crypto” as part of plans to modernise digital asset regulation. By clarifying the rules around crypto asset distribution, custody, and trading, the initiative enables US financial markets to move on-chain.
Through this new plan, the SEC is actively responding to growing global demand for tokenised securities by encouraging blockchain-based innovation. It also ties in with President Donald Trump’s previously stated goal of making America the “crypto capital of the world”.
Announced on Thursday by SEC Chair Paul Atkins, Project Crypto comes shortly after the passage of the GENIUS Act and the release of the President’s Working Group’s (PWG) report on digital asset markets.
The report, released on Wednesday, had called on the SEC to establish clearly defined rules for asset classification, custody, and tokenised markets. In a statement, the SEC noticed that Project Crypto is a direct response to the PWG’s recommendations.
Project Crypto aims to drive US digital innovation
In broad terms, Project Crypto seeks to enhance the global competitiveness of the US as an innovative digital asset hub. Its primary aim concerns the creation of clear guidelines around determining whether crypto assets are securities.
Other key areas the project will focus on includes developing purpose-fit disclosures and safe harbours for token distributions. It will also look into the modernisation of custody requirements and the enabling of “super apps”. These are platforms currently offering multiple crypto services, which could soon operate under a single licence.
The SEC’s Crypto Task Force, launched in January and led by Commissioner Hester Peirce, will help shape the new rules. This includes setting standards for tokenisation, decentralised finance, and investor protections.
SEC Chair stresses importance of keeping firms onshore
SEC Chair Paul Atkins highlighted the need to update what he described as “antiquated agency rules and regulations”. He added that modernisation was vital in order to “unleash the potential of on-chain software systems in our securities markets.”
He said: “Many of the Commission’s legacy rules and regulations do not make sense in the twenty-first century – let alone for on-chain markets. The Commission must revamp its rulebook so that regulatory moats do not hinder progress and competition, from both new entrants and incumbents, to the detriment of Main Street.”
In a detailed press release, Atkins also mentioned the importance of protecting innovation in early-stage crypto projects and decentralised systems. He also said startups need clear exemptions or grace periods so they can grow without being subject to SEC penalties.
Lastly, the SEC Chair revealed plans to create a rule whereby both registered and unregistered firms can quickly bring their products to market. Under this rule, companies would be expected to operate under clear conditions, regular reporting, and follow tokenisation standards.
On this, Atkins added: “We will not watch from the sidelines. We will lead. We will build. And, we will ensure that the next chapter of financial innovation is written right here in America.”
Remember to keep track of all the latest Crypto News at FXTrustScore.com.
