US Securities and Exchange Commission Unveils ‘Project Crypto’ Initiative to Regulate Tokenized Assets and Smart Contracts

SEC Chairman Atkins Launches “Project Crypto” to Put US Financial Markets on Blockchain

The US Securities and Exchange Commission (SEC) has unveiled Project Crypto, a comprehensive regulatory initiative aimed at modernizing securities law to accommodate tokenized assets and smart contracts. This move is expected to provide much-needed clarity for crypto innovation in the US market.

Chairman of the SEC Paul Atkins announced the launch of this project during his speech at the America First Policy Institute. According to him, the future has arrived “at full speed,” and the world cannot afford to wait.

Project Crypto will start by drafting new securities rules for tokenized assets, eliminating legacy regulations that hinder innovation in order to boost capital formation. Notably, most crypto assets will not be classified as securities, with clear guidelines separating digital collectibles (NFTs), stablecoins, and investment contracts.

As part of the initiative, the SEC is set to propose relief for issuers looking to distribute tokenized assets within the domestic market without forcing them to go offshore. Additionally, there are plans to modernize custody rules to support crypto-native custody providers, self-custody rights, and margin trading.

In an interview with CNBC, Atkins mentioned that “the SEC will not regulate away innovation,” indicating a commitment to fostering entrepreneurship and job creation in the US digital asset sector.

As part of the project, safe harbors for airdrops, network rewards, and initial offerings will be proposed. This move is expected to enable US investors to take part in on-chain capital formation seamlessly.

Source: www.coinspeaker.com