The U.S. Securities and Exchange Commission (SEC) is initiating a significant shift with the launch of Project Crypto, aiming to update the financial landscape by integrating trading, custody, and fundraising onto blockchain. Under the leadership of Chair Paul Atkins, the SEC proposes a new rulebook that adapts to the needs of the digital asset world instead of relying on outdated regulations.

Key Features of Project Crypto

• Dismissing Outdated Regulations:
  At an address hosted by the America First Policy Institute, Atkins voiced the need to abandon rules that no longer serve the modern crypto markets and to craft regulations that align with the reality of digital assets today.

Quote:
“U.S. markets are stuck using analog-era rules that don’t work for digital assets.”

• Clarity on Token Classifications:
  One of the primary goals is to establish clearer criteria regarding whether a token is deemed a security, moving away from default labeling as investment contracts. Instead of adopting a stringent enforcement-only policy, the SEC is striving to offer guidance to developers and issuers to help maintain compliance.

• Greater Options for Fundraising:
  Project Crypto seeks to streamline avenues for fundraising methods such as ICOs and airdrops to revitalize how capital is raised without inundating startups with regulatory challenges.

• Modernizing Custody Regulations:
  Acknowledging changes in asset custody, the SEC aims to update regulations for self-custody wallets and institutional services. This adjustment aims to facilitate compliance for firms targeting U.S. investors.

• Informed by Broader Recommendations:
  This initiative is part of a wider digital asset strategy emerging from the White House, seeking to redefine how digital tokens are perceived and managed nationally.

The SEC intends to start drafting proposals in the coming months, focused on creating streamlined rules that allow for growth while ensuring compliance, signaling a transformative time for the crypto landscape in the U.S.