SEC Launches Project Crypto to Revise U.S. Regulations

TLDR

• Project Crypto aims to shift from enforcement to engagement.
• Atkins emphasizes regulatory clarity for Bitcoin and Ethereum.
• Stakeholder input will shape future crypto regulations.

On July 31, 2025, SEC Chair Paul Atkins introduced “Project Crypto,” a significant initiative to change U.S. crypto regulations. Announced at the America First Policy Institute, the project aims to revise the United States’ stance on digital assets. This move departs from the previous method, which mainly enforced regulations. Atkins, who recently took office as SEC Chair, advocates for a market-friendly approach focusing on innovation.

Key figures in this initiative include Commissioner Hester Peirce, known as “Crypto Mom” for her pro-crypto stance. She leads the SEC’s Crypto Task Force, emphasizing stakeholder engagement. The project’s primary objectives are to classify crypto tokens, increase onshore industry activity, and shift from enforcement to engagement. This marks a bold regulatory shift in the U.S. and aligns with the Trump administration’s goal of bringing crypto businesses back to America.

Shift from Enforcement to Engagement

Paul Atkins’s speech highlighted the need for a new approach. He stated that crypto asset distributions should return to America and the complexities of offshore operations should end. He emphasized that creating a regulatory framework swiftly is a priority. This aligns with the view that supports transparency over blanket regulatory enforcement.

Commissioner Peirce’s role as head of the Crypto Task Force involves listening to various stakeholders. Her task force seeks input nationwide to shape future crypto regulations. This consultative approach contrasts with the previous method, which focused mainly on enforcement without adequate dialogue.

Initiatives and Funding Priorities

Specific funding allocations and grant details remain undisclosed. However, Atkins pointed to the aim of fostering capital formation and bringing back companies and liquidity. Institutional involvement is indicated, referencing bipartisan Congressional efforts to integrate U.S. markets into blockchain technologies.

The initiative affects assets including Bitcoin (BTC) and Ethereum (ETH), with an intention to provide regulatory clarity. This also applies to decentralized finance (DeFi) protocols, which face challenges related to the Howey Test and jurisdictional uncertainty. Clearer rules aim to support more robust capital formation within the sector.

Historical Context and Industry Reaction

This pivot in U.S. regulatory policy echoes previous landmark moments, including the CFTC’s 2015 guidance on derivatives and the 2018 “Hinman speech” relating to Ethereum. The EU’s Markets in Crypto-Assets (MiCA) framework in 2024 also serves as a point of reference, though none had a mandate as expansive as Project Crypto.

Market indicators such as token prices and DeFi indices might respond to this regulatory clarity. Historically, these have increased with expectations of clear regulations. However, current on-chain data, such as total value locked (TVL) or changes in staking flows, remain unaffected in connection with the announcement.

Engaging the Crypto Community

While top influencers like Arthur Hayes and Vitalik Buterin have yet to comment, feedback is being invited. Developer sentiment will be considered via open roundtables and written comments submitted to the Crypto Task Force. Visible public reactions await on forums like GitHub and Discord as developers digest the regulatory changes.

Regulatory and institutional updates continue, with Atkins underscoring that most crypto assets are not securities. “Entrepreneurs need—and deserve—bright-line rules,” he states, further echoing the need for clarity. Stakeholder views across channels continue to inform upcoming policy recommendations.

For more details on Atkins’s strategic views, please see the Atkins on digital finance revolution and regulatory implications.

Further insights into the Crypto Task Force’s objectives can be explored in the Crypto Task Force roadmap for regulatory frameworks and guidance.