The Securities and Exchange Commission (SEC) has launched a new initiative called 'Project Crypto,' aimed at updating cryptocurrency legislation in the United States. The initiative seeks to attract innovation and simplify access to cryptocurrencies.
Main Objectives of 'Project Crypto'
In a statement made in Washington, D.C. on July 31, SEC Chair Paul Atkins noted that the project is part of the agency’s response to President Trump's ambition to make the U.S. the 'crypto capital of the world.' 'Crypto' will implement key recommendations from the recent President’s Working Group report on digital market data.
Regulatory Clarity for Crypto Assets
One of the main objectives of the project is to provide regulatory clarity regarding the distribution of crypto assets in the U.S. Atkins stated that most crypto assets are not securities and blamed legal ambiguity for driving innovation offshore. The SEC will also develop new tests to help determine whether a crypto asset qualifies as a security.
Cross-Agency Collaboration
Project Crypto involves multiple SEC divisions and includes a dedicated Crypto Task Force led by Commissioner Hester Peirce. The SEC plans to explore exemptions and other authorities to ensure outdated regulations do not hinder progress. The initiative follows the recent passage of the GENIUS Act, which laid the foundation for tech-friendly financial reform.
'Project Crypto' represents an important step toward creating a clearer and more innovative regulatory environment for the cryptocurrency market in the U.S., which could foster the growth of this sector.
