The president of the dry, Atkins, announces “Project crypto” – a new era for the regulation of digital assets in the United States

The speech, pronounced the day after the president’s working group on the digital asset markets published the report entitled “Strengthen American leadership in digital financial technology” (the “PWG report”), describes the commitment of the SEC to regulatory clarity, innovation and market competition, and signals an important change in the agency’s approach to the surveillance of active assets digital and the monitoring of digital assets, and indicates a significant change in the agency’s approach to the surveillance of digital assets of digital assets¹. Atkins described the PWG report “the plan to make America first in blockchain and crypto technology” and noted that the Crypto project is designed to implement the recommendations of the PWG report and to support President Trump’s vision to make the United States “cryptographic capital of the world”.

Atkins said that most cryptographic assets are not titles, marking a clear interruption in the extended jurisdictional position of previous administration and signaling a closer application of the laws on the securities to digital assets. Atkins, rejecting the “regulation compared” approach to the previous administration, also noted that he had ordered the staff of:

• Write clear and simple rules for public opinion and comments on distributions, custody and trading of cryptographic assets
• Work with the dry Crypto Task Force, led by Commissioner Hester Peirce, to quickly implement the PWG recommendations
• Consider using interpretative, exemptable and other authorities to ensure that the obsolete rules do not interfere with innovation and entrepreneurship in the United States.

In his speech, Atkins underlined the five key initiatives of Project Crypto, which are summarized below.

Summary of Key Initiatives by Project Crypto

1. Establish a clear regulatory framework for distributions of cryptographic assets in the United States

• In accordance with the PWG report, Project Crypto will lead to an effort on the scale of the Commission to establish a regulatory framework for distributions of cryptographic assets in the United States.
• The SEC will develop and publish clear directives to help market participants to determine whether cryptographic asset is security, product, stablecoin or other type of digital asset.
• The SEC will strive to ensure that being classified as security is not a means of deterrent in innovation, but rather a flexible framework for product design and investor participation.
• Atkins underlined the need for “luminous line rules” and “disclosure for adjustment, exemptions and safe ports” for safety tokens, including for offers of initial parts (ICO), Airmat and network rewards. These can take the form of new exemptions or a port of safe for time for time for prepination tokens, softening compliance for projects at an early stage.
• This initiative aims to reshape cryptographic companies that have previously left the United States due to regulatory uncertainty and application-oriented approaches.

2. Ensure freedom of choice among guards and commercial places

• The SEC will guarantee that market players have a maximum choice on how and care and trade in cryptographic assets, thanks to possible exemplaced or other relief, in addition to changes in the rules themselves.
• Atkins has reaffirmed the committee’s commitment to protect the right of Americans to self-control their digital assets, calling it “basic American value”.
• The SEC will realize the recommendation of the PWG report to modernize childcare requirements for registered intermediaries and facilitate a competitive market for childcare providers.

3. Embed the market competition and facilitate “super-applies”

• Project Crypto is considering a regulatory environment where negotiation and intermediaries could offer a wide range of digital services and products, including non -security securities and products – in a single effective license structure (called “super -applies”).
• According to the recommendations of the PWG, the SEC will pursue executives which allow “super-applies” to operate, allowing trading side by side of digital assets and not safety and reduction of regulatory charges in doubles.
• As the PWG suggests, the agency will coordinate with the ComboDity Futures Trading Commission (CFTC) and other regulators to maximize competition and liquidity of the market, reduce the need for duplicate regulations and promotes interinousness efficiency.

4. Support chain innovation and decentralized finance (DEFI)

• The SEC will create a regulatory space for intermediate and disintent (decentralized) software systems, including DEFI protocols and automated market manufacturers.
• SEC distinguishes between pure software publishers and intermediaries, and will develop rational and achievable rules for chain operating systems.
• The Commission will explore the changes in existing rules, such as the NMS regulation, to adapt to the negotiation of token securities chain. SEC staff were also responsible for considering alleviation to facilitate the tokenization of traditional assets such as actions and instruments of debt, in order to encourage such offers on the ground.

5. Innovation exemptions and commercial viability

• The SEC explores the creation of an “innovation exemption” to allow registrants and non-inscriptions to quickly put new commercial and technology models on the market, subject to conditions based on principles.
• The emphasis will be placed on commercial viability, ensuring that regulatory requirements do not suffer in innovation and do not stimulate businesses in Offshore.

Implications for market players

Project Crypto represents a significant change in the approach of dry to the regulation of digital assets, with a strong emphasis on regulatory clarity, innovation and market competition. Market players – including issuers, trading platforms, goalkeepers and investors – should closely monitor the SEC proposals and consider getting involved in the process of public comments. The SEC should describe the regulations proposed in the short term and can use an interpretative or exemption repair in the interval. This creates a window for a proactive commitment to shape the rules. Market players should also consider getting involved directly with the crypto working group.

In addition, initiatives described in discourse are likely to create new opportunities for capital training, product development and market entry, while raising important questions about compliance, risk management and operational preparation in a rapidly changing regulatory landscape. For example, childcare arrangements, challenge participation and cross -border operational structures may have to be reassessed to align with the new framework and capitalize on potential incentives on decline. Although cases of technical recording can go back, fraud, cybersecurity violations and the application of market manipulation will remain active priorities. Consequently, market players should also consider examining commercial structures, products and compliance programs to position themselves as best as possible for this new regulatory framework.

Conclusion

The ATKINS project speech project, Crypto, marks the start of a new era for the regulation of digital assets in the United States. By adopting the chain markets, by supporting innovation and providing clear road rules, the SEC aims to cement America’s leadership in the World Revolution of Digital Finance. Market players should prepare for a more dynamic, competitive and adapted to innovation environment and be ready to seize the opportunities it presents.

Please contact any member of our Fintech and Digital Assets team with questions concerning speech or its potential impact on your operations.

¹ For a more in -depth analysis of the PWG report, please consult our previous article “Key of the dishes to be remembered on the report on digital assets of the White House, a strategic framework for the American digital asset policy” available on: https://www.aoshearman.com/en/insights/ao-hearman-on-fintech-digital-issets/Key-akeaWays-From-The-Hite-hehous-House-Digital-Sets-Report.

² The SEC launched the Crypto Task Force directed by Commissioner Hester Peirce on January 21, 2025 and clarified the extent of his regulatory jurisdiction on various products and digital assets (for more information, see our previous articles on coins, the elements of wicks and the assets. Stablecoins “Available on:” SEC staff occupies a position on protocol “available on:

³ On August 4, 2025, the acting president of the CFTC, Caroline Pham, announced the launch of an initiative for crypto-active exchange contracts which are listed on a term exchange registered with the CFTC. In this announcement, Pham said that “the CFTC is at full speed to allow immediate trade in digital assets at the federal level in coordination with the Crypto project of the SEC.” This initiative is the first initiative of the CFTC crypto sprint, announced by PHAM on August 1, 2025 to start the implementation of recommendations in the PWG report.

⁴ On August 1, 2025, the SEC announced that its crypto working group will host a series of round tables across the country to offer additional stakeholders to meet the Commissioner Hester Peirce, who heads the working group on the crypto. The working group is particularly interested in hearing representatives of projects related to the crypto who have ten employees or less and have less than two years.