šØ SEC Launches Project Crypto: Most Cryptos Not Securities, Major Overhaul Ahead šØ
The U.S. Securities and Exchange Commission, under Chair Paul Atkins, has unveiled āProject Cryptoāāa sweeping initiative to modernize Americaās securities regulations for the digital asset era. This shift marks a dramatic change in attitude, signaling that the U.S. intends to lead in blockchain innovation, asset tokenization, and decentralized finance.
š Key Points
š¹ Modernizing the SEC Rulebook for Onchain Finance
Project Crypto aims to rewrite legacy securities laws to remove regulatory barriers holding back crypto innovation. SEC staff have been directed to draft simple, clear guidelines for crypto asset distributions, custody, and trading, following the recommendations of the Presidentās Working Group on Digital Assets. The old practice of āregulation by enforcementā is being replaced by proactive, tailored rulemaking.
š¹ Most Crypto Assets Are Not Securities
Chair Atkins explicitly declared, āmost crypto assets are not securities.ā This stance departs sharply from the agencyās past positions and reduces regulatory uncertainty for developers, exchanges, and investors. The SEC will create new, objective standards for determining if and when a digital asset is a security or investment contract, removing the default assumption that all tokens are securities.
š¹ Exemptions, Safe Harbors, and Support for Innovation
The initiative will propose regulatory exemptions and safe harbors for early-stage crypto projects, initial coin offerings (ICOs), and decentralized applications. The SEC intends to ensure startups and DAOs can launch, experiment, and innovate with safeguards rather than fear of litigation or forced offshoring.
š¹ Streamlined Rules for Super-Apps and Brokerages
Project Crypto will support the emergence of āsuper apps,ā allowing broker-dealers and trading platforms to offer multiple servicesācovering securities, non-securities, staking, and lendingāunder a single license. This will replace the patchwork of state and federal licensing and help onshore previously foreign-domiciled crypto businesses.
š¹ Onshoring Crypto and Clarifying Custody
The SEC plans to update custody rules so that exchanges and custodians arenāt hindered by outdated frameworks, paving the way for more competition and better security for U.S. users. The initiative is also focused on bringing token distributions and other crypto activities back from overseas by fostering regulatory clarity and confidence at home.
š” Why It Matters
A New Era for U.S. Crypto: The SECās proactive, innovation-first approach may draw back crypto businesses that fled heavy-handed enforcement, positioning the U.S. as the ācrypto capital of the world.ā
Clarity on Token Status: With most cryptos no longer presumed to be securities, new products and services can launch more boldly and compliantly.
Accelerating Capital Formation: Capital raising via digital assets becomes easier, safer, and more attractive for U.S. entrepreneurs and investors.
Advancing Self-Custody and Decentralization: Atkins emphasized the right to self-custody and direct access to decentralized finance protocols as foundational.
Project Crypto represents the most significant policy reversal and modernization effort in SEC history. By affirming that most tokens are not securities and fast-tracking regulatory clarity, Chair Atkins signals that America is open for blockchain businessāand intends to lead in the race to digitize global finance.
https://www.ledgerinsights.com/sec-chair-launches-project-crypto-says-most-cryptos-are-not-securities/