US Securities and Exchange Commission (SEC) Chair Paul Atkins has unveiled Project Crypto, a sweeping initiative aimed at modernizing regulations for digital assets. In a landmark statement at the OECD Roundtable in Paris, Atkins said that “most crypto tokens are not securities,” signaling a major policy shift from the previous administration’s enforcement-heavy approach.
Clear Rules Replace Ad Hoc Enforcement
“It is a new day at the SEC,” Atkins told attendees, emphasizing that policy will no longer be set by ad hoc enforcement actions. Instead, he promised “clear, predictable rules of the road so that innovators can thrive in the United States.”
The announcement comes as part of the SEC’s strategy to provide regulatory certainty to blockchain-based markets. According to Atkins, the President’s Working Group on Digital Asset Markets has already delivered a blueprint for integrating trading, lending, and staking under one framework.
SEC Supports Crypto “Super-Apps”
One of the most notable elements of Project Crypto is its support for multi-service platforms, or “super-apps,” that can combine trading, lending, and staking under a single regulatory umbrella. Atkins added that these platforms should have flexibility to offer multiple custody solutions, giving investors choice while ensuring protections.
“I believe regulators should provide the minimum effective dose of regulation needed to protect investors, and no more,” Atkins said. “We should not overburden entrepreneurs with duplicative rules that only the largest incumbents can bear.”
Looking to Europe’s MiCA for Guidance
Atkins praised the European Union’s Markets in Crypto-Assets (MiCA) framework, calling it “a comprehensive digital assets regime” and suggesting the US could learn from Europe’s early steps. He also urged international cooperation to ensure open, innovative markets:
“Working together, as Alexandre de Tocqueville might have put it, we can ‘extend the sphere’ of freedom and prosperity.”
While the US is moving toward a lighter, innovation-focused framework, Europe continues to tighten rules for traditional financial institutions. The European Banking Authority (EBA) recently finalized standards requiring banks to hold significantly more capital against unbacked cryptocurrencies like Bitcoin and Ethereum. Under these draft rules, Bitcoin falls into “Group 2b” with a 1,250% risk weight, making it costly for banks to hold.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.