SEC Chair Atkins Reinforces Support for Project Crypto: Pushing for Technological Advancement and Embracing Novelty

In a groundbreaking move, the Securities and Exchange Commission (SEC) has launched Project Crypto, an ambitious initiative aimed at modernising U.S. securities regulations to foster innovation and leadership in the crypto space. Led by SEC Chair Paul Atkins, the project is currently active and making significant strides [1][3][5].

At the heart of Project Crypto is a commitment to establishing clear guidelines for classifying crypto assets. This includes distinguishing securities, commodities, stablecoins, and digital collectibles, providing much-needed clarity for market participants regarding regulatory obligations [1][2][3].

The project also seeks to provide a regulatory framework for Initial Coin Offerings (ICOs), airdrops, and network rewards. By promoting tailored disclosures, exemptions, and safe harbors, the SEC aims to reduce regulatory uncertainty and encourage innovation, all while protecting investors [1][2][4].

Another key aspect of Project Crypto is the integration of tokenized securities and DeFi. The initiative aims to enable the trading of traditional securities (stocks, bonds, partnership interests) on decentralized finance (DeFi) protocols without a central intermediary, broadening market access and supporting DeFi growth under a transparent regulatory framework [1][5].

Custody and self-custody flexibility are also priorities for Project Crypto. Atkins emphasised the importance of self-custody, a "core American value," and the SEC plans to modernise custody rules for intermediaries and foster a competitive custodial services market [2][5].

Perhaps the most significant shift brought about by Project Crypto is a move away from the SEC's previous "regulation-by-enforcement" model. Under Atkins' tenure, the SEC is focusing on creating a predictable regulatory environment that supports innovation and investor protection primarily through anti-fraud enforcement [3][4].

The initiative aligns with recommendations from the President’s Working Group on Digital Asset Markets report, serving as a policy blueprint supporting America's leadership in blockchain technology [2][3][5].

Atkins believes that most crypto tokens are not securities by nature, marking a departure from past SEC chairs' views. Last month, Atkins unveiled Project Crypto, specifically emphasising that, under his tenure, the regulator would never again pursue "regulation by enforcement" against crypto projects [4].

The launch of Project Crypto was coordinated to roll out a day after the Trump administration released a 168-page crypto policy recommendation. Last week, powerful crypto firms and lobbying groups, including Andreessen Horowitz and the DeFi Education Fund, requested that the SEC shield developers of decentralized apps dealing in securities from the risk of SEC enforcement [5].

If fully implemented as planned, Project Crypto could significantly reduce legal uncertainty, helping crypto businesses to thrive domestically rather than relocating abroad [2][4]. The event took place at the Four Seasons in Jackson Hole.

[1] https://www.sec.gov/news/press-release/2025-07-01-sec-announces-project-crypto [2] https://www.whitehouse.gov/wp-content/uploads/2025/06/Executive-Order-on-Ensuring-American-Leadership-in-Technology-and-Innovation.pdf [3] https://www.sec.gov/news/speech/atkins-wyoming-blockchain-symposium-2025-08-27 [4] https://www.sec.gov/news/speech/atkins-crypto-regulation-2025-08-30 [5] https://www.coindesk.com/policy/2025/08/31/secs-atkins-pledges-crypto-projects-will-soon-have-little-to-fear-from-securities-regulation/