SEC Launches Project Crypto to Modernize US Securities Law
On July 31, SEC Chairman Paul Atkins announced "Project Crypto," a regulatory initiative to modernize securities law and integrate US financial markets with blockchain technology. Key points include:
- Project Crypto aims to implement recommendations from the President’s Working Group on Digital Asset Markets.
- The initiative aligns with the GENIUS Act, which establishes a stablecoin regulatory framework.
- New securities rules will accommodate tokenized assets and smart contract settlements.
- The SEC plans to redefine regulations like Reg NMS to enhance competition and capital formation.
A major goal is to eliminate legal uncertainties surrounding crypto assets, with most not classified as securities. The SEC will create clear guidelines for differentiating between digital collectibles, stablecoins, and investment contracts. Other focuses include:
- Tokenization of traditional securities (equities, bonds).
- Proposals for safe harbors for airdrops and initial offerings.
- Modernizing custody rules to support crypto-native providers and self-custody rights.
- Potential for "super-apps" offering various services under one regulatory framework.
This initiative is expected to increase demand for compliant asset management tools as investors prepare for changes in US crypto regulations.