SEC Unveils Project Crypto, Backed by GENIUS Act

The U.S. Securities and Exchange Commission (SEC), under Chairman Paul Atkins, has launched 'Project Crypto,' an initiative to modernize securities regulations and integrate blockchain technology into U.S. financial markets. Building on the recommendations of the President’s Working Group on Digital Asset Markets and the recently enacted GENIUS Act, the project emphasizes clear disclosures, exemptions, and safe harbors for crypto offerings, including ICOs and airdrops. Atkins affirmed that most crypto assets are not considered securities, representing a significant policy shift from prior SEC leadership. The SEC also plans to update custody rules to support self-custody, highlighted as a core American value, and to enable broker-dealers to offer a wide range of crypto and traditional financial services under a single license through 'super-apps.' Commissioner Hester Peirce will lead a Crypto Task Force to coordinate agency divisions and expedite new proposals and interim guidance. The initiative aims to cement U.S. leadership in digital finance while balancing innovation and investor protection.