SEC Launches Project Crypto to Modernize Regulations for Digital Assets
SEC Chairman Paul Atkins announced the launch of "Project Crypto" aimed at reshaping U.S. crypto policies following President Trump's directives.
- The initiative will modernize securities regulations to support on-chain financial markets.
- Atkins has instructed SEC staff to draft clear rules regarding crypto asset distributions, custody, and trading.
- He emphasized that most crypto assets are not securities, contrasting previous SEC statements.
- The SEC plans to provide guidelines for determining if a crypto asset qualifies as a security or investment contract.
- Atkins seeks to propose disclosures and safe harbors for crypto securities, including initial coin offerings and airdrops.
- He advocates for self-custody of crypto assets while acknowledging that some investors will rely on SEC-registered firms.
- Atkins supports the idea of 'super-apps' that offer diverse services under one license without excessive regulatory burden.
- The future oversight structure may involve the Commodity Futures Trading Commission playing a larger role in crypto regulation.
This initiative aims to enhance the U.S.'s position in the crypto market and facilitate innovation while addressing regulatory challenges.