Key Notes
- "Project Crypto" will draft new securities rules for tokenized assets and eliminate legacy regulations to boost capital formation.
- Most crypto assets won't be classified as securities, with bright-line rules differentiating NFTs, stablecoins, and investment contracts.
- The initiative includes custody modernization and safe harbors for airdrops, enabling US investors to participate in on-chain finance.
On July 31, SEC Chairman Paul Atkins announced the launch of “Project Crypto,” a sweeping regulatory initiative designed to modernize securities law and bring US financial markets onto blockchain rails. Speaking at the America First Policy Institute, Atkins described the effort as a generational opportunity to lead global innovation, stating, “The future is arriving at full speed, and the world is not waiting.”
The President’s Working Group recs follow months of collaboration across agencies and perspectives. It reflects a conviction I have long held: a regulatory framework for digital assets is the best way to catalyze American innovation.
My full statement:
— Paul Atkins (@SECPaulSAtkins) July 30, 2025
According to the speech, Project Crypto will form the core of the Commission’s new regulatory agenda, aimed at implementing recommendations from the President’s Working Group on Digital Asset Markets.
The initiative coincides with the recently enacted GENIUS Act , which provides a stablecoin regulatory framework and pushes forward President Trump’s objective to make America “the crypto capital of the world.”
Project Crypto will begin with drafting new securities rules to accommodate tokenized assets, disintermediated finance, and smart contract-based settlement systems. The SEC will also consider rewriting or eliminating legacy regulations like Reg NMS to encourage venue competition and improve capital formation.
Regulatory Clarity, Tokenization and the Return of US-Based Crypto Innovation
A central focus of Project Crypto will be to remove legal uncertainty stifling crypto asset innovation. Atkins confirmed that most crypto assets will not be treated as securities, pushing the SEC to create “bright-line rules” to differentiate digital collectibles (NFTs), stablecoins, and investment contracts.
The Commission will also explore tokenization of traditional securities, such as equities and bonds, and offer relief for issuers seeking to distribute tokenized assets domestically. Safe harbors for airdrops, network rewards, and initial offerings will be proposed, allowing US investors to participate in on-chain capital formation without forcing issuers offshore.
Custody modernization is also high on the agenda, as the US SEC is now billed to revise outdated custody rules to support crypto-native custody providers, self-custody rights, and margin trading. Likewise, market participants may soon operate “super-apps” offering securities, non-securities, staking, and lending under a single regulatory umbrella.
Best Wallet In Demand as SEC’s ‘Project Crypto’ Sparks Shift to On-Chain Assets
As the SEC unveils Project Crypto to migrate traditional finance infrastructure onto blockchains, investor interest in compliant, on-chain asset management tools like Best Wallet, a fast-growing non-custodial wallet, is growing as traders prepare for a new era of tokenized securities.
