SEC Launches “Project Crypto” to Bring U.S. Financial Markets On‑Chain

In a major policy pivot, SEC Chair Paul Atkins unveiled Project Crypto on July 31, 2025, an agency‑wide initiative aimed at transforming outdated securities regulations and paving the way for America’s financial markets to operate on-chain.

Atkins launched the initiative at the America First Policy Institute, citing a recent 160‑page report by the White House’s Working Group on Digital Asset Markets. Project Crypto is designed to bring the U.S. back to the forefront of blockchain innovation by creating a regulatory framework tailored to crypto realities—including tokenized securities, decentralized finance (DeFi), and crypto fundraising.

⁣Key Pillars of the Initiative

• Clear Rules for Crypto Classification & Capital Formation
  The SEC will draft clear guidelines to help market participants decide whether a crypto asset is a security, commodity, or stablecoin. Atkins emphasized that most crypto assets are not securities, countering previous interpretations that broadly applied the Howey test to digital assets.
• Support for Tokenized Securities & Airdrops
  The policy encourages onshore issuance of tokens and aims to revitalize initial coin offerings (ICOs), airdrops, and network rewards through tailored disclosures, safe harbors, and exemptions.
• Enabling “Super‑Apps”
  Atkins advocates allowing broker‑dealers and alternative trading systems (ATS) to offer combined services—traditional securities, staking, lending, and crypto asset trading—under a single license, reducing regulatory fragmentation across states.
• Integration of DeFi Into Markets
  The SEC will update its rules to allow on‑chain software systems, whether decentralized or intermediary‑operated, to interact seamlessly within traditional capital markets.

Atkins argues that archaic rules like Reg NMS, which predate blockchain, will be reexamined and reformed to eliminate regulatory barriers to innovation and market efficiency SEC.

⁣Industry & Policy Implications

The crypto industry welcomed Project Crypto as a dramatic shift from the enforcement-heavy era under former chair Gary Gensler. Experts see it as a potential catalyst for reshoring crypto firms, unlocking tokenized capital markets, and signaling a generational opportunity for U.S. leadership in blockchain finance.

Analysts note this shift could spur the development of tokenized real‑world assets (RWAs), with projected tokenized market cap of $2–4 trillion by 2030. While Congress continues deliberation on legislation like the GENIUS Act and CLARITY Act, which also aim to codify stablecoin and crypto regulations, Atkins stressed using existing SEC authority now to accelerate progress.

Why It Matters

Project Crypto represents more than shifting gears—it signals a strategic realignment of U.S. crypto policy. By prioritizing clarity, innovation, and inclusion, the SEC under Atkins is rejecting previous hostility toward digital assets in favor of an industry‑friendly, global leadership stance. The initiative may shape markets for crypto, DeFi, and tokenized finance for years.