SEC Vigorously Deploys All Departments Towards Establishing Cryptocurrency Supremacy, According to Atkins
The U.S. Securities and Exchange Commission (SEC) is taking significant strides to modernize its existing securities rules, aiming to support crypto innovation rather than suppress it. This shift is led by the current SEC Chair, Paul Atkins, who recently launched the comprehensive "Project Crypto" initiative in late July 2025.
Key aspects of Chair Atkins’s approach include clarifying crypto asset classifications, creating regulatory relief and exemptions for various crypto activities, facilitating the integration of tokenized securities and DeFi, modernizing custody and intermediary rules, and advocating for a flexible, principles-based innovation exemption.
Chair Atkins emphasized the importance of these changes, stating that "most crypto assets are not securities," marking a departure from the historically hostile or overly broad stance of the SEC under previous administrations. The initiative aims to provide regulatory clarity, flexibility, and a path for on-chain markets to flourish in the U.S.
One of the key areas of focus for Chair Atkins is the adaptation of rules around custody, which have been in place for 90 years. He believes that these rules need to be adapted to the novel technology of crypto assets. In this regard, the SEC is working to rethink existing custody requirements to accommodate self-custody and multifunctional "super-app" service platforms.
The House passed the GENIUS Act in July, which Chair Atkins described as a "very good step forward" for crypto regulation. However, he did not specify which other bills in Congress he was referring to. Republican Commissioner Hester Peirce of the SEC stated that the U.S. has enough existing authority to do "a lot of work" in the crypto realm without waiting for the passage of new bills in Congress.
Chair Atkins has made it clear that the SEC is mobilizing to focus on turning the U.S. into the "crypto capital of the world." He expects much more progress in the near future regarding crypto regulation and emphasized that there was a hostile environment for crypto innovation in the past.
In summary, under Paul Atkins, the SEC is moving away from hostility toward crypto innovation towards a regulatory framework aimed at fostering U.S. leadership in digital finance. The "Project Crypto" initiative is a testament to this shift, and it remains to be seen how these changes will shape the future of crypto regulation in the U.S.
- The SEC's modernization efforts under Paul Atkins include price prediction for cryptocurrencies like Bitcoin and Ethereum, as he envisions a flexible, principles-based innovation exemption that could foster growth in on-chain markets.
- With the SEC's focus on adapting regulations for stablecoins and other crypto activities, it may lead to the development of robust technology for the management and trading of these digital assets.
- As the House has passed the GENIUS Act, Chair Atkins has highlighted its importance in crypto regulation while expressing confidence in the existing authority of the SEC to advance in the crypto realm, potentially leading to a future where the U.S. becomes the global leader in crypto technology.
