SEC says it will deregulate cryptocurrencies with 'Project Crypto'

In a Thursday speech, U.S. Securities and Exchange Commission (SEC) chairman Paul S. Atkins announced “Project Crypto,” an initiative to modernize the country’s securities rules and regulations to move financial markets on-chain. 

“Under my leadership, the SEC will not stand idly by and watch innovations develop overseas while our capital markets remain stagnant,” he said at an America First Policy Institute event in Washington D.C. His plan includes measures to reshore crypto businesses that have left the country and to ensure that “archaic rules and regulations do not smother innovation and entrepreneurship in America.” 

“Many of the Commission’s legacy rules and regulations do not make sense in the twenty-first century — let alone for on-chain markets,” he continued. “The Commission must revamp its rulebook so that regulatory moats do not hinder progress and competition — from both new entrants and incumbents — to the detriment of Main Street.”

Deregulation of cryptocurrencies has become a marker of President Trump’s administration. Earlier this year, the SEC dismissed multiple cases against crypto firms such as Kraken, Coinbase, and Robinhood previously accused of selling unregistered securities.

Under Atkins’ direction, Project Crypto will look to establish clear and simple rules for crypto asset distributions, custody, and trading. He said it will develop guidelines to categorize crypto assets and establish a regulatory framework for distributions and will also enable “super-apps,” or platforms that allow banks and brokers to offer several services with a single license, rather than needing multiple state and federal licenses. 

Atkins called the project a “defining moment for American leadership in the crypto asset markets.”