By Jason Meyers

In a landmark speech delivered on July 31, 2025, at the America First Policy Institute in Washington, D.C., SEC Commissioner Paul S. Atkins announced the launch of “Project Crypto,” a bold initiative aimed at propelling the United States to the forefront of the global digital asset revolution. Titled “American Leadership in the Digital Finance Revolution,” Atkins’ address drew historical parallels to the nation’s founding financial innovations, positioning blockchain and cryptocurrencies as the next transformative force in capital markets. This new project emerges amid a shifting regulatory landscape under the Trump administration, which has signaled strong support for crypto innovation to bolster economic growth and technological leadership.

The creation of Project Crypto stems directly from the recommendations outlined in the President’s Working Group on Digital Asset Markets (PWG) Report, released just a day prior to Atkins’ speech. The report serves as a blueprint for federal agencies, including the SEC, to foster a regulatory environment that encourages innovation while mitigating risks. Atkins emphasized that the initiative will direct the SEC’s policy divisions to collaborate closely with the agency’s Crypto Task Force, led by Commissioner Hester Peirce, to develop and implement these proposals swiftly. This collaborative effort is designed to address longstanding uncertainties in the crypto space, such as the classification of digital assets under securities laws, custody arrangements, and the governance of decentralized finance (DeFi) protocols.

At its core, Project Crypto’s objectives are multifaceted, focusing on creating legal clarity, promoting investor protection, and driving economic opportunities. One primary goal is to modernize disclosure requirements for crypto asset transactions that fall under securities regulations. Atkins highlighted the need for “purpose-fit disclosures” tailored to the unique nature of digital assets, rather than applying outdated frameworks that stifle growth.

Chair Atkins stated, “Thus, for those crypto asset transactions that are subject to the securities laws, I have asked staff to propose purpose-fit disclosures, exemptions, and safe harbors, including for so-called ‘initial coin offerings,’ ‘airdrops,’ and network rewards.” This approach aims to encourage issuers to include American investors in their distributions, providing legal certainty and reducing the incentive to exclude U.S. participants due to regulatory complexity.

Another key objective involves rethinking custody rules to accommodate the digital era. Traditional custody frameworks, designed for physical securities, often clash with the decentralized and programmable nature of blockchain assets. Project Crypto will explore exemptions and safe harbors to allow for secure, innovative custody solutions, ensuring that investors can safely hold and trade digital assets without unnecessary barriers.

Atkins also addressed DeFi protocols, calling for clarified rules that balance innovation with oversight. By classifying certain DeFi activities appropriately—whether as securities, commodities, or something novel—the project seeks to prevent fraud and market manipulation while enabling protocols to thrive.

Beyond regulatory tweaks, Project Crypto is poised to create significant opportunities for collaboration between the SEC, industry stakeholders, and policymakers. Atkins envisions a participatory process where crypto firms, investors, and experts can engage through public consultations, workshops, and feedback mechanisms. This collaborative model draws inspiration from historical SEC successes, such as the resolution of the 1960s “Paperwork Crisis” through the creation of the Depository Trust and Clearing Corporation. By working hand-in-hand with the Crypto Task Force, the SEC aims to finalize frameworks that are not only clear but also adaptable to future technological advancements.

Such collaboration will be instrumental in finalizing regulatory frameworks that benefit America on multiple fronts. First, it will facilitate the “onshoring” of crypto businesses, attracting entrepreneurs and capital back to U.S. shores. Atkins noted that overly restrictive regulations in the past have driven innovation abroad, but Project Crypto could reverse this trend, creating jobs and boosting GDP. He quoted President Trump’s vision, aligning it with the project’s goals: “The President said last week that he wants ‘the entire world running on the backbone of American technology.’ I stand ready to help get that job done.” This underscores how the initiative will position America as a global hub for blockchain development, enhancing national security by reducing reliance on foreign tech infrastructures.

Moreover, clear frameworks will democratize access to finance, particularly for unbanked populations. Blockchain’s potential for faster settlements, lower costs, and transparent transactions could revolutionize remittances, lending, and investment opportunities. Atkins drew parallels to Alexander Hamilton’s establishment of a national bank and credit system under George Washington, arguing that crypto represents a similar opportunity to build inclusive financial systems. He warned against repeating past mistakes of regulatory overreach, which he said “drove innovation offshore and left American investors on the sidelines.”

Project Crypto also emphasizes risk management, ensuring that frameworks protect against illicit activities while fostering growth. By implementing the PWG’s recommendations, the SEC will propose rules for on-chain markets, including rethinking the Howey Test for digital assets. This test, established in 1946, determines whether an asset is a security, but Atkins called for its modernization to better fit decentralized networks. He expressed optimism about the project’s impact: “That is why I am launching Project Crypto and directing the SEC’s policy divisions to work with the Crypto Task Force, led by Commissioner Peirce, to swiftly develop proposals to implement the PWG’s recommendations. Project Crypto will help ensure that the United States remains the best place in the world to start a business, develop cutting-edge technologies, and participate in capital markets.”

In conclusion, Project Crypto marks a pivotal shift toward pro-innovation regulation, aligning with the Trump administration’s agenda to make America the crypto capital of the world. Through targeted collaborations and finalized frameworks, it promises to unlock economic potential, enhance financial inclusion, and secure U.S. leadership in digital finance. As Atkins aptly put it, this initiative could herald a “golden age” where blockchain not only transforms markets but also upholds the American spirit of ingenuity and opportunity. With stakeholders rallying around this vision, the future of digital assets looks brighter—and decidedly American.

About the Author

Jason Meyers is Contributor and Head of Digital Assets at Crypto File. His work focuses on policy and regulation. Jason is the lead architect of Pacioli.ai, the world’s first web3 regulatory disclosure automation infrastructure. Jason is a former investment banker and took many companies public including Alexion Pharmaceuticals ($40 billion exit to AstraZeneca), VCA,($9 billion exit to Mars Inc) and Medarex, Inc ($2.5 billion exit to Bristol Myers). Follow @JasonMeyersNYC on X.