SEC Launches ‘Project Crypto’ Initiative to Make America the ‘Crypto Capital of the World’

Key Points

1. SEC Chairman Paul Atkins announced 'Project Crypto' on July 31, 2025, to create regulatory frameworks for digital asset trading and strengthen U.S. leadership in crypto.

2. The initiative follows a White House report advocating policies to prevent fintech firms from moving offshore due to regulatory uncertainty.

3. The SEC plans to develop guidelines for tokenized securities and allow 'super-app' functionality for integrated trading platforms under a single license.

4. Modernized custody rules replace the previous 'special-purpose broker-dealer' framework, with SAB 122 replacing SAB 121.

5. An innovation exemption is being considered to streamline market entry for new business models, with principles-based compliance for token standards like ERC3643.