The US SEC launches "Project Crypto" aiming for an on-chain transition in the US financial markets.

"Put All Financial Markets On-Chain"

On the 31st, SEC Chairman Paul Atkins announced the launch of "Project Crypto." He described it as a comprehensive initiative to modernize securities rules and regulations, enabling the on-chain transition of the U.S. financial markets. This is a comprehensive effort aimed at realizing President Trump's vision of making the U.S. the global capital of cryptocurrency.

The project will quickly develop proposals for implementing the recommendations of the President's Working Group (PWG) in collaboration with the cryptocurrency task force led by Commissioner Hester Peirce and the policy division. Chairman Atkins stated, "This ensures that the United States remains the best place in the world for starting businesses, developing cutting-edge technologies, and participating in capital markets." Based on the PWG report released on the 30th, it details the federal agencies' approach to cryptocurrencies.

The SEC aims to develop clear guidelines for market participants to classify cryptocurrencies into categories such as digital collectibles, digital commodities, and stablecoins. It clarifies its position that most cryptocurrencies are not securities and seeks to resolve confusion surrounding the application of the Howey Test. Even if they are deemed securities, it proposes appropriate disclosures, exemptions, and safe harbors for initial coin offerings (ICOs) and airdrops.

In addition, the realization of the "super app" model will create an environment where securities intermediaries can offer a wide range of products and services under a single license. The content also includes the establishment of a framework where broker-dealers operate alternative trading systems, allowing for parallel trading of non-securities cryptocurrencies and securities cryptocurrencies. The policy aims to eliminate the need for over 50 state licenses and multiple federal licenses, providing an efficient regulatory structure.

Furthermore, the SEC has also instructed the updating of old rules to unlock the potential of on-chain software systems. It will create pathways to accommodate systems that do not require central intermediaries, such as decentralized finance (DeFi) and automated market makers (AMM). Chairman Atkins emphasized that "decentralized finance and other on-chain software systems will become part of the securities market, without being buried under redundant and unnecessary regulations."