SEC Unveils “Project Crypto” to Boost Blockchain Integration in Financial Markets

The U.S. Securities and Exchange Commission (SEC) recently launched an initiative called “Project Crypto,” aimed at updating securities regulations to better support crypto-based financial systems.

SEC Chairman Paul Atkins announced the initiative during the “American Leadership in the Digital Finance Revolution” conference. According to Atkins, this move aligns with President Trump’s goal of positioning the United States as a global leader in cryptocurrency and digital finance.

Atkins noted that many of the SEC’s current rules were written for a financial world that depended on intermediaries. But with blockchain, he argued, these intermediaries may no longer be necessary. “We shouldn’t force outdated models onto new technologies,” he said, noting that regulations should evolve to match the potential of decentralized systems.

The policy shift comes at a time when interest in tokenized assets is growing rapidly. Tokenization involves converting real-world assets, like stocks or real estate, into digital tokens that can be traded on blockchain networks.

These tokens represent a stake in the asset, though they don’t always provide direct ownership. BlackRock’s CEO Larry Fink has referred to this trend as a major milestone in the digital transformation of financial markets.

Companies such as Gemini, Kraken, and Robinhood have already started offering tokenized stock trading outside of the United States. Coinbase is also lobbying the SEC for permission to roll out similar features in the U.S.

Atkins also highlighted the growing importance of “super apps”—platforms that combine services like payments, messaging, and social media in one place. He referenced Coinbase’s recent app as an example and stated that such innovations need regulatory flexibility, not layers of oversight. Apps like Alipay and WeChat have succeeded in this model in China, but similar efforts in the U.S. have not taken off, despite attempts by firms like X and Meta.

In closing, Atkins stated that the administration plans to stop innovation from being pushed overseas by complicated regulations. The SEC, he said, should support U.S.-based innovators instead of tying them up with outdated compliance systems.

This shift follows a report released just a day earlier by the President’s Working Group on Digital Assets, which offered a roadmap for strengthening the U.S. position in the digital economy. Atkins said that the SEC’s internal Crypto Task Force, headed by Commissioner Hester Peirce, will begin working to implement the group’s recommendations.

The event was hosted by the America First Policy Institute, founded in 2021 to advance President Trump’s policy goals. Key figures behind the institute include Agriculture Secretary Brooke Rollins and Larry Kudlow, who previously led the National Economic Council.

Leading crypto companies like Coinbase Global Inc. (NASDAQ: COIN) are likely to welcome these changes to the crypto regulatory climate in the U.S. as the stance of the previous administration had placed several roadblocks in the way of crypto innovation.

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