The SEC is launching the Project Crypto initiative, aimed at modernizing U.S. securities rules in line with advancements in blockchain technology.
Goals and Objectives of Project Crypto
SEC Chairman Mark Uyeda announced the launch of Project Crypto, intended to align securities regulations with the latest developments in blockchain technology. This initiative follows President Trump's directive to enhance U.S. leadership in the digital asset market.
Key Areas of the Initiative
Project Crypto will focus on three main areas: 1. Asset classification. The SEC will differentiate digital commodities from securities, which may simplify the classification of Bitcoin and similar assets as commodities. 2. Custody rules revision. New rules will provide clarity on the custody of crypto assets, while allowing individual investors to continue using self-custody. 3. Support for integrated trading platforms. Broker-dealers may offer combined trading of traditional securities and crypto assets, reducing state-specific licensing redundancies.
Outlook and Implementation Timeline
The SEC plans to propose rules for public comment within 90 days. Temporary exemptions may facilitate a smooth transition period. Full implementation of Project Crypto could be completed by late 2026. This initiative is expected to provide operational certainty for Bitcoin and simplify access to custody solutions and exchange listings.
Project Crypto by the SEC represents a significant step towards creating a more secure and predictable investment environment for digital assets, bolstering the U.S. position on the international stage.
