TLDR
- SEC’s Paul Atkins says most crypto assets are not securities.
Project Crypto will modernize rules for digital asset custody and trading.
The SEC will draft new guidelines based on Trump’s Working Group report.
SEC aims to allow trading of multiple asset types on single platforms.
The U.S. Securities and Exchange Commission (SEC) has introduced a sweeping initiative to modernize its approach to digital assets.
Chairman Paul Atkins announced “Project Crypto” on Thursday, marking a shift in the agency’s stance by stating that most crypto assets do not fall under securities laws. The project will provide updated guidelines for digital asset distribution, custody, and trading, according to his speech at the America First Policy Institute.
Atkins said the SEC would create “clear and simple rules” to guide market participants and help remove uncertainty. The initiative supports the recommendations in a newly released report from the President’s Working Group, which includes other top-level agency officials.
Chairman Paul Atkins Says Most Crypto Assets Are Not Securities
Paul Atkins directly challenged earlier interpretations from the SEC by stating,
“Despite what the SEC has said in the past, most crypto assets are not securities.”
He referred to confusion caused by the “Howey test,” noting that it had led developers to wrongly classify all tokens as securities.
He also stated that labeling assets as securities should not hinder innovation. “A securities label should not be a scarlet letter,” Atkins said. His remarks reverse the agency’s previous tone under former Chair Gary Gensler, who claimed most cryptocurrencies met securities definitions.
Project Crypto to Deliver Rules on Custody and On-Chain Systems
The SEC will now focus on rule proposals for how digital assets are handled, especially in custody and trading. These proposals will be open for public feedback.
Paul Atkins added that the SEC will also use its authority to provide interim exemptions and interpretations as new rules are formed.
The chairman confirmed that Commissioner Hester Peirce would lead a task force to work with the agency’s divisions. The goal is to help classify assets into categories like digital commodities, collectibles, and stablecoins. This clarity is expected to reduce regulatory friction in U.S. crypto markets.
Paul Atkins Push for Unified Licenses and Support for Super-App Models
Paul Atkins also voiced support for crypto platforms offering multiple services under a single license.
“A broker-dealer with an alternative trading system should be able to offer trading in non-security crypto assets alongside securities,” he said.
He criticized the current setup, where firms must hold many state and federal licenses to offer crypto services. The new vision is to allow integrated crypto platforms—referred to as “super-apps”—to operate more efficiently.
The chairman also backed the right of users to hold crypto in self-custodial wallets and participate in activities such as staking. He explained that while many users may still rely on regulated firms, personal ownership must remain protected.
Project Crypto Backed by White House Working Group
Project Crypto builds on a report released Wednesday by the President’s Working Group on digital assets. The report outlines broad regulatory goals and includes input from the SEC, Treasury, and Commerce departments.
Paul Atkins emphasized the administration’s goal to bring back crypto firms that had left the U.S. due to previous enforcement policies. He said the SEC would “reshore” innovation lost during the last administration’s regulatory clampdowns.
He also addressed ongoing legal debates involving open-source developers. In reference to the Tornado Cash case, he stated the agency must protect software coders and clearly define the lines between publishing code and running intermediated services.
The initiative represents a sharp pivot from prior regulatory enforcement to a more structured, policy-based approach that seeks to place digital assets firmly within the U.S. financial system.
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