SEC Brings Out “Project Crypto” to Make U.S. the Blockchain Capital of the World

Key Points

1. Project Crypto marks a shift from the SEC's previous enforcement-heavy approach under former Chair Gary Gensler, aiming to reduce regulatory stifling of innovation and prevent crypto firms from moving offshore.

2. The initiative includes protecting self-custody and platform choice as core American values and moving away from duplicative oversight.

3. The SEC plans to introduce an 'innovation exemption' to allow novel crypto business models to launch with temporary relief from certain regulations.

4. The agency will revisit regulations to facilitate tokenized equities and blockchain-based market infrastructure, paving the way for advanced financial technologies.

5. A new Crypto Task Force, led by Commissioner Hester Peirce, will oversee the implementation of Project Crypto, with draft rules to be published for public comment.