SEC Launches "Project Crypto" to Modernize U.S. Financial Markets Through Blockchain
July 31, 2025 — The U.S. Securities and Exchange Commission (SEC) announced on Thursday the launch of "Project Crypto," an ambitious initiative aimed at modernizing securities regulations to facilitate crypto-based trading and advance the use of blockchain technology within U.S. financial markets.
The unveiling took place during the "American Leadership in the Digital Finance Revolution" conference, where SEC Chair Paul Atkins outlined the vision behind the project. "To achieve President Trump’s vision of making America the crypto capital of the world," Atkins said, "the SEC must holistically consider the potential benefits and risks of moving our markets from an off-chain environment to an on-chain one." The term "on-chain" refers to utilizing blockchain technology, which underpins cryptocurrencies, but also offers broader applications for financial transactions and asset management.
Modernizing Securities Regulations for a Digital Age
Atkins emphasized the necessity to update "antiquated agency rules and regulations" to unlock the potential of on-chain software systems in securities markets. He noted that federal securities laws have historically assumed the presence of intermediaries requiring regulation. However, Atkins argued that regulations should not impose intermediaries where markets can function effectively without them, suggesting a shift toward more streamlined, technology-driven processes.
The SEC’s project coincides with a growing wave of interest in tokenization — the process of creating digital tokens on blockchains that represent tangible assets such as publicly traded securities, real estate, or other forms of value. Token holders typically do not have direct ownership of the underlying asset but hold a digital representation.
Industry Enthusiasm and Developments
Prominent financial leaders have embraced tokenization’s promise. BlackRock CEO Larry Fink recently described tokenizing every financial asset as a vital step in the ongoing technological revolution transforming financial markets.
Several crypto trading platforms, including Robinhood, Gemini, and Kraken, have already introduced tokenized equity offerings available to users outside the United States. Meanwhile, Coinbase is actively seeking SEC approval to offer comparable tokenized asset services within the U.S. market.
Prioritizing “Super Apps” and Regulatory Efficiency
Chairman Atkins highlighted the emergence of "super apps"—multi-functional mobile applications integrating diverse financial and social services—as a critical focus area. Referencing a super app that Coinbase launched recently, Atkins called for "an efficient licensing structure" to allow such apps to flourish without being encumbered by multiple regulatory layers.
Super apps, which are common in China with platforms like WeChat and Alipay, remain a coveted model in the West. These apps integrate payments, messaging, social media, and other features into a single user experience. Companies like Meta Platforms and X have experimented with related concepts but have yet to replicate the success seen abroad.
Balancing Innovation with Regulation
Atkins stressed the Trump administration’s commitment to supporting innovation by preventing burdensome, one-size-fits-all regulations that could drive crypto companies offshore. "The SEC will encourage our nation’s builders rather than constrain them with red tape," he affirmed.
"Project Crypto" was unveiled just one day after the President’s Working Group on Digital Asset Markets issued a comprehensive report recommending a federal framework to uphold U.S. leadership in digital asset markets. Atkins has directed the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, to collaborate across the agency to implement these recommendations.
About the Conference and Initiative
The announcement was made at a conference sponsored by the America First Policy Institute, a think tank established in 2021 to promote policies aligned with President Trump’s agenda. The institute was founded by Brooke Rollins, current U.S. Secretary of Agriculture, and Larry Kudlow, former director of the National Economic Council under Trump.
As digital finance continues to evolve, "Project Crypto" marks a significant regulatory step toward incorporating blockchain technologies into the traditional securities framework, aiming to maintain U.S. competitiveness and investor protection in a rapidly changing financial landscape.
For further updates on cryptocurrency regulations and market trends, stay tuned to CNBC Crypto World.