On July 31, 2025, the SEC unveiled “Project Crypto,” an ambitious initiative to modernize U.S. securities regulations for the blockchain era. Spearheaded by Chairman Paul Atkins, this project aims to position the United States as a global leader in digital finance by enabling American financial markets to operate “on-chain” using blockchain technology.

Project Crypto sets out to provide clarity on the classification and regulation of crypto assets. This means developing clear guidelines to differentiate between digital assets like stablecoins, commodities, securities, and collectibles. The initiative focuses on tailored disclosures, appropriate exemptions, and safe harbors for emerging crypto activities, including initial coin offerings, airdrops, and network rewards.

A key element of the project is making it easier to tokenize traditional assets—such as stocks and bonds—and integrate them within decentralized finance (DeFi) systems. The SEC envisions a future where tokenized securities can be traded directly on decentralized platforms without relying on central intermediaries. This move could foster efficient and transparent financial markets.

Project Crypto also emphasizes the creation of “super apps”—platforms where investors can access a suite of services, from crypto trading and custody to staking and lending, all under a unified regulatory framework. These steps are designed to attract crypto businesses back to the U.S. by offering regulatory clarity and a level playing field for innovation.

This effort aligns with broader government initiatives to update digital asset regulation and follows recommendations from the President’s Working Group on Digital Assets. The SEC is pursuing formal rulemaking and public engagement, including hosting roundtables nationwide for industry and public input.

Ultimately, Project Crypto represents a regulatory shift toward supporting the growth of tokenization, DeFi, and other digital asset innovations within the U.S. capital markets. If successful, it could reshape the country’s role in global finance and create a robust framework for the next era of financial technology.