SEC Launches ’Project Crypto’ to Modernize Token Rules and Shift US Markets On-Chain

The Securities and Exchange Commission (SEC) unveiled "Project Crypto," a commission-wide initiative aimed at modernizing securities rules for blockchain-based activities. Chair Paul Atkins announced the program at the America First Policy Institute, emphasizing its goal to transition US markets on-chain. The initiative will implement recommendations from the President’s Working Group and leverage the GENIUS Act's framework for payment stablecoins.

Atkins clarified that his remarks reflect personal views, not official SEC policy. The project will involve staff across policy divisions collaborating with a crypto Task Force led by Commissioner Hester Peirce. Key objectives include providing clear token definitions and establishing guidelines to classify crypto assets, particularly to determine when distributions qualify as "investment contracts."

"Most crypto assets are not securities," Atkins stated, directing staff to develop tailored disclosures and exemptions for initial coin offerings, airdrops, and network rewards. The initiative seeks to repatriate token distributions that moved offshore due to regulatory uncertainty.