SEC Launches ‘Project Crypto’ in Bid to Position US as Global Leader in Digital Finance

WASHINGTON, D.C., August 1, 2025 — Creating a way forward for modernizing securities rules and regulations, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins on Thursday announced “Project Crypto,” an initiative that aims to fulfil President Trump’s objective to make US world’s crypto capital.

Speaking at an America First Policy Institute event, Atkins highlighted several key priorities for the SEC under his chairmanship, with top priority to bringing crypto asset distributions back to America. Paul also asserted on enhancing custody options and facilitating “super-apps,” besides updating regulations to accommodate on-chain software.

“To achieve President Trump’s vision of making America world’s crypto capital, the SEC must holistically consider the potential benefits and risks of moving our markets from an off-chain environment to an on-chain one,” SEC chair Paul Atkins said in remarks to an “American Leadership in the Digital Finance Revolution” conference Thursday afternoon, referring to blockchain technology that enables cryptocurrencies, but has other applications as well.

“I have directed the Commission staff to update antiquated agency rules and regulations to unleash the potential of on-chain software systems in our securities markets...Federal securities laws have always assumed the involvement of intermediaries that require regulation, but this does not mean that we should interpose intermediaries for the sake of forcing intermediation where the markets can function without them.”

How is Tokenisation of Assets Important?

Project Crypto has been announced with an overwhelming investor interest in tokenization, or the process of issuing digital representations on a blockchain network of publicly-traded securities, real world assets or any other form of value. Those in possession of tokenized assets don’t have outright ownership of the assets themselves. “To me the tokenization of every financial asset is a vital step in the technological revolution in the financial markets,” BlackRock CEO Larry Fink told CNBC.

Crypto trading platforms Robinhood, Gemini and Kraken have all thrown open tokenized equity offerings to users outside the US. Coinbase has said it was seeking SEC’s approval to offer a similar service.

Role of Super Apps

SEC chair Atkins highlighted “super apps”, such as one Coinbase introduced recently, as a priority of his chairman stature, while stating that there was a need to allow the apps to thrive with an efficient licensing structure, and save them from multiple regulatory authorities.

Bundling service: The “super apps” like WeChat and Alipay, which see bundling of several services and functionalities into a single mobile app, have long been viewed as the most coveted aspect of financial technology by the industry. These apps have a pivotal role in everyday life in China but have not been successfully replicated in the West. Meta Platforms and X have made attempts to meet that target of integrating payments, messaging and social content, among other functions.

Innovation to Continue: Atkins also said the Trump administration will work to prevent “innovation-driven companies” from being forced offshore by rigid regulations. He said the SEC “will encourage our nation’s builders rather than constrain them with red tape and one-size-fits-all rules.”

Digital Asset Market Report: The SEC proposal comes a day after the President’s Working Group on Digital Asset Markets released a long-awaited report with recommendations for the SEC and other federal agencies to build a framework to boost U.S. dominance in digital asset markets.

Atkins said he has directed the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, to work with other parts of the SEC to implement the working group recommendations.

In his directions to SEC staff, Atkins has asked them to draft clear rules for crypto asset distributions, custody, and trading, while considering exemptions and relief measures in the interim. He asserted that most crypto assets are not securities and vowed to issue guidelines to help market participants categorize digital assets appropriately.

The chairman also addressed the need for modernized custody requirements, stating that "the right to have self-custody of one’s private property is a core American value" while acknowledging that some investors will continue to rely on registered intermediaries.

Project Crypto has been announced with an overwhelming investor interest in tokenization. Besides, innovative companies will be prevented from being driven offshore by burdensome regulations.

Inputs from Saqib Malik

Editing by David Ryder