SEC Chairman announces Project Crypto to push U.S. financial markets onto blockchain

Early this morning, SEC Chairman Paul Atkins delivered a speech on the theme of "Building the United States into the World's Crypto Capital." The most important of these speeches was the launch of Project Crypto, which is also the next step in the White House's "Digital Asset Report." Atkins summarized the crypto regulatory changes envisioned during the SEC's future administration in several parts, including securities laws, custody, geographical restrictions, and licensing applications.

Before detailing Project Crypto, Atkins briefly reviewed the evolution of the capital market, from the founding of the New York Stock Exchange to the current development of blockchain and cryptocurrency. "Throughout this process, the SEC has always played a crucial role—maintaining the market. Markets and technology have constantly advanced.

The US market has evolved from paper stock certificates and delayed clearing and settlement systems to electronic settlement via computers, and finally to the widespread use of electronic trading systems today. The SEC has both fostered innovation and, unfortunately, stifled it." Today, regulation doesn't have to cling to the remnants of a bygone era, which is unfriendly to new sectors.

To fulfill Trump's vision of making the US the world's crypto capital, the SEC needs to push for something new, but it must also consider the potential benefits and risks of shifting the US market from off-chain to on-chain. Project Crypto aims to modernize securities rules and regulations and promote the on-chain development of US financial markets.

Yesterday, the White House released a "Digital Asset Report," hailed by the industry as a "regulatory bible." It addresses regulatory updates for crypto businesses, stablecoins, banks, and taxation.

Atkins stated that the SEC will fully cooperate with the asset report.

Project Crypto has prompted the SEC's policy department to collaborate with the Peirce-led Cryptocurrency Working Group to rapidly develop proposals implementing the recommendations of the Working Group on Financial Markets (PWG), aiming to ensure the United States remains the world's best location for entrepreneurship, cutting-edge technology, and participation in capital markets.

Regarding the latest progress on Project Crypto, Atkins stated:

1. Crypto Onshore—Crypto vs. Securities Law is a thing of the past.

2. Trading Freedom—A more diverse range of custodians and exchanges.

3. "Reg Super-Apps"—The evolution of applying for state-level licenses.

4. Unleashing the Potential of the US Market—Unregulated Decentralization.

5. Innovation Exemptions—Services and business models that don't fully comply with regulations can also enter the market.

Although Atkins stated at the beginning of his speech that these views are personal and not necessarily representative of the SEC, many of his ideas are on track. This makes us sigh, "Looking back at Atkins's Gensler days, the SEC's attitude has truly changed dramatically."