US Securities Regulator Unveils Comprehensive Crypto-Friendly Rulemaking Plans
Washington, D.C., July 31, 2025 — In a landmark move set to reshape the regulation of digital assets in the United States, Securities and Exchange Commission (SEC) Chair Paul Atkins announced sweeping initiatives aimed at modernizing capital markets rules to better accommodate cryptocurrencies and blockchain technologies. The ambitious agenda, unveiled Thursday during a speech at the America First Policy Institute, signals a significant regulatory shift favoring the crypto industry — long advocating for clearer, tailored regulations.
New Crypto Rulemaking under “Project Crypto”
Titled “Project Crypto,” the initiative is designed to overhaul existing securities laws by introducing clearer guidance on how cryptocurrencies and tokenized securities will be treated under U.S. law. Atkins directed SEC staff to begin drafting rules that clarify when a crypto token qualifies as a security, propose broad disclosure requirements and exemptions, and outline regulatory pathways for new digital asset business models.
“A generational opportunity is before us,” Atkins said in his address. He emphasized that Project Crypto will seek to rapidly implement recommendations from a recent White House report encouraging federal agencies, including the SEC and Commodity Futures Trading Commission (CFTC), to justify expanded digital asset trading at the federal level using existing authority.
Among key priorities are establishing an “innovation exemption” permitting market participants to launch new crypto-based business ventures within a flexible regulatory framework and providing guidance on the classification of digital assets as securities or commodities. The SEC intends to ease restrictions currently separating securities trading from that of other asset categories, such as commodities, enabling varied crypto tokens to trade alongside one another on regulated platforms.
Background: Policy Shift from Biden to Trump Administration
Atkins’ plans represent a marked departure from the approach during the previous Biden administration, during which the SEC aggressively pursued enforcement actions against prominent crypto exchanges, including Coinbase and Binance, alleging regulatory violations related to unregistered securities offerings.
The Biden-era crackdown drew criticism from many in the crypto sector, who felt the regulatory environment was hostile to innovation and harmful to industry growth. In contrast, the Trump administration, which has shown strong public support for digital assets, has ceased these enforcement proceedings and now actively promotes crypto adoption. Trump’s own crypto-related investments and family involvement in meme coin projects have drawn some scrutiny amid concerns about potential conflicts of interest, though the White House has denied any impropriety.
Industry Implications and Next Steps
The comprehensive crypto-friendly agenda outlined by Chair Atkins closely aligns with the digital asset industry’s long-standing calls for clarity. By defining clearer standards around when tokens qualify as securities and providing exemptions and regulatory flexibility, the SEC aims to foster growth and integration of crypto into traditional financial markets.
Atkins also instructed SEC staff to collaborate directly with companies exploring “tokenized securities” — blockchain-based shares representing ownership in stocks or investment funds — an area attracting significant interest among major crypto players.
While Project Crypto’s detailed regulations are still in development, Atkins confirmed the SEC will leverage existing interpretative and exemptive powers to offer interim regulatory relief for crypto issuers, exchanges, and intermediaries pending final rule adoption.
Industry leaders, who invested heavily during last year’s election supporting President Trump and congressional Republicans, are expected to welcome the new direction. Project Crypto addresses key industry requests for updated legal frameworks and is poised to catalyze broader acceptance of crypto assets within the U.S. financial system.
Reporting by Hannah Lang and Douglas Gillison in Washington, D.C. Editing by Pete Schroeder and Aurora Ellis.