SEC Chairman Paul Atkins announced “Project Crypto” to eliminate regulatory grey areas for digital assets, during his November 2025 speech at the Federal Reserve Bank of Philadelphia.
By establishing clear rules and exemptions, the initiative aims to modernize regulatory structures, potentially affecting market dynamics for cryptocurrency tokens and decentralized finance.
SEC Chairman Paul S. Atkins announced “Project Crypto” to tackle the regulatory grey zone for digital assets. This initiative aims to establish clear rules, a token taxonomy, and tailored exemptions to address existing regulatory ambiguities.
The project involves Atkins, Hester Peirce and Mark Uyeda, focusing on defining crypto assets under the SEC’s federal securities laws. This initiative is expected to ground regulations in economic reality, away from slogans or fear-based approaches.
Project Crypto Expected to Spur Innovation and Clarity
Market participants expect Project Crypto to provide clarity, potentially fostering innovation by removing ambiguous rules that hinder industry growth. This may influence how crypto assets are classified and traded across different regulatory platforms. Paul S. Atkins, SEC Chairman, remarked on the shift from “regulation-by-enforcement” to notice-and-comment rulemaking, emphasizing a need for “fit-for-purpose standards” that focus on fraud.
The initiative could reshape digital assets by establishing a token taxonomy and offering exemptions for certain tokens. This aligns with past regulatory shifts to promote a more structured framework, supporting healthy market evolution.
From Enforcement to Rule-making: A New SEC Approach
This shift marks a departure from previous SEC approaches, moving from enforcement-based regulation to rule-making through stakeholder feedback. Similar past efforts have led to more defined standards, mitigating fraud and enhancing market trust.
Experts at Kanalcoin suggest that Project Crypto could become a benchmark for global regulators. By focusing on clear guidelines and reducing use of fear-based rhetoric, the initiative aligns with successful historical trends supporting industry innovation.
Paul S. Atkins, SEC Chairman vowed to eliminate the regulatory grey zone for digital assets through “Project Crypto,” stating, “In the coming months, I anticipate that the Commission will consider establishing a token taxonomy that is anchored in the longstanding…”
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