The Securities and Exchange Commission (SEC) has unveiled “Project Crypto,” a sweeping new initiative to overhaul securities rules in the U.S. and allow for crypto-based trading, aiming to transform the country’s financial markets by bringing them onto blockchain networks.
Modernizing Market Rules for a Blockchain Era
Announced at the “American Leadership in the Digital Finance Revolution” conference on Thursday, SEC Chair Paul Atkins emphasized that Project Crypto is about “updating antiquated agency rules and regulations” to unlock blockchain’s potential for U.S. capital markets. Atkins referenced President Trump’s goal to make “America the crypto capital of the world,” noting that the SEC must now thoughtfully consider the pros and cons of shifting from traditional, off-chain financial infrastructure to blockchain-powered “on-chain” systems.
“Federal securities laws have always assumed intermediaries needing regulation,” Atkins said, “but we shouldn’t force middlemen into markets that can operate faster and more efficiently without them.”
Investor Interest and Tokenization Push
The SEC’s announcement comes during a surge in investor enthusiasm for tokenization—the process of creating digital tokens on a blockchain that represent securities, real-world assets, or other forms of tradable value. While holders of these tokenized assets don’t legally own the underlying assets, industry leaders like BlackRock CEO Larry Fink have argued that tokenization is a critical step in the ongoing technological revolution sweeping through global financial markets.
Driving this movement, trading giants such as Robinhood, Gemini, and Kraken already offer tokenized equity trading to users abroad, while Coinbase is actively lobbying the SEC for permission to roll out a similar service in the U.S.
“Super Apps” and a Unified Licensing Vision
A cornerstone of Atkins’ agenda is fostering the rise of so-called financial “super apps”—all-in-one platforms combining payments, trading, messaging, and social functions. Atkins cited Coinbase’s recently introduced super app as an example, arguing the SEC must enable such innovations to thrive under an efficient licensing regime instead of unnecessary multi-agency oversight.
These super apps, commonplace in Asia through apps like WeChat and Alipay, are seen as the future of digital finance but have yet to find true success in Western markets, despite moves by companies like Meta and X to integrate multiple financial and social services.
Regulatory Shift: From Red Tape to Innovation
Atkins pledged that under the Trump administration, the SEC will not allow innovative crypto and fintech firms to be driven offshore by excessive regulatory burdens. Instead, the agency will promote a friendlier environment for technological builders, replacing “one-size-fits-all rules” with tailored guidance that encourages growth and risk-taking in the U.S. digital asset sector.
The Project Crypto proposal also comes on the heels of a major report from the President’s Working Group on Digital Asset Markets, which mapped out recommendations for coordinated action among the SEC and other agencies to strengthen U.S. dominance in global digital asset markets. Atkins has directed Commissioner Hester Peirce—leading the SEC’s Crypto Task Force—to work closely with peers to implement those recommendations.
Policy Backdrop and Looking Ahead
The Thursday conference was hosted by the America First Policy Institute, founded to drive President Trump’s policy priorities. As U.S. regulators and policymakers increasingly align on fostering blockchain innovation, Project Crypto signals a new chapter as the SEC adapts its rules to support both market modernization and America’s leadership in digital finance.
