Big Shake-Up Ahead? SEC Chair Paul Atkins Announces Project Crypto to Bring TradFi On-Chain

The U.S. Securities and Exchange Commission (SEC) is preparing for a significant shift in how financial markets operate, introducing an initiative dubbed “Project Crypto” aimed at updating securities regulations for an increasingly blockchain-based future.

The announcement came Thursday from SEC Chair Paul Atkins, who emphasized that the goal is to align U.S. markets with emerging technologies while providing a clear framework for crypto-related activities.

Building a path for On-Chain market infrastructure

Project Crypto is set to build on recommendations outlined in a recent report from the President’s Working Group (PWG), a coalition of federal agencies including the Treasury and Commerce Departments.

According to Atkins, the initiative will involve close collaboration between SEC policy divisions and a dedicated Crypto Task Force, led by Commissioner Hester Peirce, to draft proposals that adapt current rules for on-chain systems.

“We want to ensure that the U.S. remains the best place to launch businesses and innovate in finance,” Atkins said during his announcement.

He explained that the project’s focus is to establish guidelines for categorizing digital assets, whether they’re collectibles, commodities, stablecoins, or other forms of tokens, while assessing the economic realities behind each transaction.

The move signals an effort to prepare for a gradual migration of market operations from traditional, off-chain systems to blockchain-based infrastructures.

Draft rules will cover areas like asset distribution, custody, and trading, with opportunities for public feedback before finalization.

Laying the groundwork for decentralized finance

One of the key objectives of Project Crypto is to integrate decentralized finance (DeFi) and other blockchain-powered systems into regulated markets without imposing unnecessary barriers.

Atkins stressed that new rules would aim to “unlock the potential of on-chain software systems” while avoiding duplicative oversight that could stifle growth.

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