
SEC Chair Atkins launches Project Crypto initiative, says most crypto assets are not securities
The US Securities and Exchange Commission (SEC) has launched a new project aimed at modernizing its rules and regulations for digital assets, SEC Chairman Paul Atkins announced today. The “Project Crypto” aims to simplify the classification of tokens, providing clearer guidelines for companies seeking to distribute them.
Atkins emphasized that most crypto assets are not securities, stating that the agency will no longer ignore market demands for choice and disincentivize crypto-based capital raising. According to him, confusion over the application of the “Howey test” has led some innovators to treat all digital assets as securities unnecessarily, which is a major obstacle to innovation.
The initiative, dubbed Project Crypto, focuses on four key areas: creating clear guidelines for determining whether certain assets are securities or not; developing purpose-fit disclosures and safe harbors for token distributions; modernizing custody requirements; and enabling “super-apps” that can offer multiple crypto services under a single license.
Atkins stressed the importance of establishing a regulatory environment that supports innovation in the digital asset space. He announced that the SEC will work closely with the Crypto Task Force, led by Commissioner Hester Peirce, to swiftly develop proposals implementing the recommendations from the President’s Working Group on Digital Asset Markets.
As part of this initiative, the agency has been directed to draft “clear and simple rules of the road” for crypto asset distributions, custody, and trading. This will be followed by a public notice and comment period.
Source: cryptobriefing.com