The U.S. Securities and Exchange Commission (SEC) has officially announced Project Crypto, a new agency-wide initiative aimed at modernizing digital asset regulation. The program introduces a broad restructuring of how securities laws apply to crypto assets, with the stated goal of making the United States a global leader in blockchain innovation.

A Clear Departure from Enforcement-First Policies

Unveiled by SEC Chairman Paul S. Atkins in Washington, D.C., on July 31st, Project Crypto marks a notable shift in tone and direction for the agency. Unlike previous strategies that emphasized enforcement actions, the SEC now aims to establish a defined regulatory framework that provides clarity and predictability for developers, platforms, and investors.

According to Atkins, Project Crypto is intended to align with the federal government’s economic priorities, including the recently enacted GENIUS Act, which sets out national standards for stablecoins. “Our regulatory framework need not be anchored to an analog past”, Atkins said, emphasizing that the U.S. must lead the next phase of digital financial innovation.

Related: U.S. Senate Passes GENIUS Act in Landmark Stablecoin Vote

Building the Legal Foundation for Onchain Markets

One of the most significant elements of Project Crypto is the SEC’s plan to support a transition toward onchain financial markets. The Commission intends to revise existing regulations to accommodate blockchain-native infrastructure such as tokenized securities, decentralized custody, and automated settlement systems.

This includes updating foundational rules like Reg NMS, enabling onchain clearing and trading, and potentially laying the groundwork for blockchain-based capital markets. The agency is also preparing draft rules that will classify crypto assets more clearly as securities, commodities, collectibles, or stablecoins.

“Super-Apps” and Streamlined Licensing

In what Atkins described as a “super-app vision” for U.S. markets, Project Crypto introduces the concept of a single-licensed platform that integrates trading for both traditional and digital assets. These platforms would allow users to stake, lend, trade, and invest, all under one regulatory structure.

To support this, the SEC will coordinate with other U.S. regulators to streamline licensing requirements and eliminate redundant oversight. The aim is to give both startups and established institutions a more efficient path to compliance and innovation.

Innovation Exemptions and Safe Harbor Policies

Recognizing that emerging crypto business models often don’t fit neatly into existing categories, the SEC plans to offer “innovation exemptions”, temporary regulatory relief for qualifying projects that meet core investor protection standards.

The Commission also intends to roll out safe harbors and formal guidelines to ease legal ambiguity around token distribution models, including staking rewards, airdrops, and utility tokens. This is particularly relevant for developers and projects navigating long-standing questions about which tokens may be considered securities.

Early Market Response and Next Steps

The crypto market reacted sharply following the announcement. Assets like XRP and Solana (SOL) experienced noticeable price declines, a reflection of market uncertainty during transitional regulatory periods. However, many in the industry see the long-term direction of Project Crypto as a step toward much-needed legal clarity.

SEC Commissioner Hester Peirce has been appointed to lead the new Crypto Task Force, and the agency plans to release proposed rule changes for public comment in the coming months. While implementation will involve legislative coordination and possible legal challenges, the broader vision is to bring digital finance firmly under U.S. jurisdiction.

Road Ahead

Project Crypto marks a decisive change in how the U.S. approaches blockchain regulation. With SEC leadership now focused on enabling rather than restricting innovation, the initiative aims to reshape the financial regulatory landscape and establish a new standard for digital asset oversight. While many details remain pending, the intent is clear: the SEC wants the U.S. to lead, not follow, in the next phase of global financial infrastructure.