Key Points :
- The U.S. SEC, under Chairman Paul Atkins, is launching Project Crypto, a framework to provide clear, predictable rules for digital assets, aiming to modernize securities regulation and shift from enforcement-led to rule-led policy.
- Most tokens will not be regulated as securities under the new approach; the SEC pledges “bright-line” rules for when assets are securities, plus clear guidelines for custody, staking, lending, and trading under unified licensing.
- Tokenized securities, decentralized finance (DeFi), “super-apps” offering combined services (trading, lending, staking, custody) under one license are central to the vision.
- New regulatory tools: interpretative or exemptive relief in the short term, proposed amendments to existing rules (e.g. Regulation NMS), and innovation exemptions to accelerate adoption.
- The SEC sees AI (agentic finance) combined with blockchain as a transformative force: autonomous AI agents executing trades, allocating capital, risk management, with compliance embedded in code.
- There is a push to bring crypto distributions back onshore (i.e. in the U.S.), reduce offshore legal complexity, give entrepreneurs more certainty.
- Global partnerships, tokenization efforts by major exchanges (e.g. Nasdaq), and coordination with other regulatory bodies (CFTC etc.) are part of the recent developments.
Overview and Background
In a speech delivered in Paris at the OECD’s inaugural Roundtable on Global Financial Markets (September 10, 2025), SEC Chairman Paul Atkins proclaimed that “crypto’s time has come,” elaborating on Project Crypto — an initiative he first introduced on July 31, 2025 — aimed at overhauling the U.S. regulatory framework for digital assets so that financial markets can move on-chain.
Atkins emphasized that regulation will no longer be driven chiefly by enforcement after the fact, but by clear, predictable rules. He committed that the SEC will offer clarity on what constitutes a security (versus non-security crypto asset), updating the rules to accommodate tokenization, staking, lending, custody, and trading under unified regulatory licenses.
Regulatory Reforms under Project Crypto
Classifying Crypto Assets & Securities
One of the core aims is to draw bright-lines: to specify when a token is a security and when it is not. Atkins argues that most tokens should not be categorized as securities. This would reduce legal uncertainty for innovators, especially when raising funds via token offerings, airdrops, or network rewards.
Tokenization, DeFi & On-Chain Markets
Project Crypto includes facilitating the tokenization of traditional securities (stock, bonds, partnership interests) and allowing them to be traded side-by-side with non-security crypto assets on both centralized and DeFi platforms. Revision of regulation to accommodate on-chain trading, smart contracts, automated market makers, is part of the plan.
Custody, “Super-Apps”, and Integrated Platforms
New custody rules, more choices for how assets are stored (self-custody, intermediaries), allowing platforms that combine multiple financial services (trading, staking, lending, custody) under one regulatory license (“super-apps”) are central. This intends to reduce duplicative regulatory burdens and to align regulatory oversight with how people increasingly want to use crypto services.
Short- and Long-Term Tools: Relief, Innovation Exemption, Rule Changes
While many reforms will need formal rulemaking, Atkins directs SEC staff to use interpretative relief and exemptive relief in the meantime to prevent outdated rules from stifling innovation. Also discussed are proposed amendments, such as to Regulation NMS, to better incorporate on-chain settlement and trading. An innovation exemption is also being floated to help novel technologies get deployed more quickly under regulatory guardrails.
Agentic Finance: AI Meets Blockchain
Atkins introduced the concept of agentic finance (or “AI agent financial systems”) as a central pillar of his vision. Autonomous AI agents will execute trading, allocate capital, manage risk, embed compliance directly in code, operate at speeds and scales beyond human capacity. Combined with transparent, auditable blockchain infrastructure, these systems could lower costs, speed up markets, democratize access to advanced strategies.
The role of regulatory guardrails remains essential: the SEC intends to provide “commonsense” controls rather than over-react with fearful regulation. The idea is that compliance becomes part of code, not just a box-checking exercise.
Recent Related Developments
- Nasdaq filing: Nasdaq has submitted a proposal to the SEC to allow trading of tokenized securities—transforming traditional stocks or ETFs into blockchain-based tokens—with the goal of trading both tokenized and traditional forms in the same order book and under the same rules, provided the underlying rights are preserved. First token-settled trades might occur by Q3 2026, subject to infrastructure readiness.
- CFTC coordination: The Commodity Futures Trading Commission (CFTC) has taken steps to allow listed spot crypto asset contracts on registered futures exchanges. This move is coordinated with SEC’s Project Crypto.
- Regulatory ease and dismissals: Under new leadership, some regulatory actions have softened. For example, prior enforcement-heavy approaches are being replaced by framework building, public comment, rulemaking. Some lawsuits have been dropped or paused, signalling a shift in tone.
Implications for Practitioners and Investors
For those seeking new crypto assets or revenue sources, or applying blockchain in practical settings, Project Crypto offers several signals:
- Clarity reduces risk: If classification of tokens becomes predictable, capital raising onchain (ICOs, token sales, etc.) becomes less legally uncertain.
- Tokenization may open up new asset classes: Real-world assets tokenized (stocks, bonds, etc.) may become more accessible, with fractional ownership and more fluid trading across platforms, including DeFi.
- Super-apps and integrated platforms may become fertile ground: startups that combine staking, lending, trading, custody may align well with regulatory preferences.
- AI + blockchain combinations could be a cutting edge: building platforms with embedded compliance, using onchain data + AI agents for risk management or strategy execution.
- Infrastructure matters: On-chain settlement, custody options, interoperable platforms, and regulatory compliance capabilities will be crucial. Timing is important: some changes (rulemakings) will take time; others (reliefs, interpretative guidance) may occur sooner.
Challenges & Risks
- A lot depends on how bright-line rules are drawn: if too strict or vague, could hamper innovation or misclassify many useful tokens.
- Regulatory harmonization across states, U.S. federal bodies, and globally will be needed; differences and friction remain.
- Enforcement vs rule-making balance: although enforcement is being deemphasized, existing legal precedents and past lawsuits may still influence behavior.
- AI agentic finance introduces new compliance, risk, transparency, ethical issues: code bugs, adversarial attacks, misuse, explainability.
- Infrastructure readiness: tokenized securities require clearing, settlement infrastructure (like the Depository Trust Company for Nasdaq’s proposal), or compatible DeFi protocols.
Conclusion
Project Crypto represents a notable shift in U.S. regulatory strategy toward digital assets: from enforcement after the fact, toward proactively writing rules that accommodate on-chain markets, tokenization, and AI-driven finance. For innovators, investors, blockchain practitioners, this is an inflection point. Opportunities in tokenized securities, integrated platforms, AI-embedded compliance, and DeFi are expanding; however, execution will depend heavily on the design of rules, regulatory clarity, infrastructure roll-out, and global cooperation. For those seeking the next asset or revenue stream, aligning with these emerging regulatory norms will likely offer the best risk/return trade-off.
