SEC Unveils ‘Project Crypto’ to Modernize Securities Rules for Digital Assets
Amidst a turbulent day in the crypto markets, a significant regulatory development went unnoticed by many. According to a research report by Wall Street broker Bernstein, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins presented a bold and transformative vision for the future of crypto regulation.
Described as the most ambitious initiative ever proposed by a sitting SEC chair, ‘Project Crypto’ aims to revolutionize the country’s outdated securities laws to adapt to the digital age. The ultimate goal is to position the United States as a global leader in crypto innovation by creating a more welcoming regulatory environment for digital assets.
Reshaping the Regulatory Landscape
One of the key objectives of ‘Project Crypto’ is to bring crypto businesses back to the U.S. after years of uncertainty drove them to offshore jurisdictions. The SEC plans to leverage its interpretative and exemptive powers to update antiquated rules, ensuring they support entrepreneurship and competition rather than hinder it.
In a significant departure from previous policy, Chairman Atkins declared that the majority of crypto assets are not securities. He identified the confusion surrounding the Howey Test as a barrier to capital formation and pledged to establish clearer guidelines for classifying digital assets, including commodities, stablecoins, collectibles, and tokens with governance and distribution rights.
Paving the Way for Tokenization
Additionally, ‘Project Crypto’ sets the stage for the tokenization of traditional assets such as stocks and bonds within the U.S. market. With support from major financial institutions and technology companies, the SEC aims to create the world’s largest tokenized securities market on American soil.
As the crypto industry continues to gain mainstream acceptance, the SEC’s proactive approach to regulation signals a new era of innovation and growth. By fostering a more favorable environment for digital assets, the U.S. is poised to become a global hub for cryptocurrency and blockchain technology.
Read more: Crypto Is Going Mainstream and ‘You Can’t Put the Genie Back in the Bottle,’ Bitwise Says