On July 31, 2025, SEC Chairman Paul Atkins announced the launch of 'Project Crypto', aimed at modernizing U.S. securities regulations for blockchain and crypto.
SEC Goals and Initiative
Paul Atkins stated in his speech that the goal of 'Project Crypto' is to enhance the appeal of the U.S. for crypto companies. The initiative aims to update regulatory norms around Ethereum and Layer 1 blockchains to support innovations in decentralized finance (DeFi).
Market Reaction to New Regulation
The initial market reaction to the announcement of 'Project Crypto' resulted in a slight decline in Bitcoin prices. Stakeholders are expected to carefully analyze the potential implications of the new regulation. SEC officials indicated that no direct funding was currently allocated for the initiative, but reducing barriers aligns with government financial strategies.
Historical Parallels and Expert Opinions
With 'Project Crypto', the U.S. is adopting a regulatory strategy similar to Japan’s FSA post-2017 reforms but with a broader focus on federal-level blockchain integration. Experts note that such initiatives could bolster market confidence and attract institutional investors.
The regulatory initiative aims to modernize rules and create a more conducive environment for crypto innovations in the U.S., potentially fostering growth in the fintech ecosystem.
