SEC’s ‘Project Crypto’ Aims to Ease Rules for Blockchain Startups

Reading Time: < 1 minute

In a bid to support crypto innovation, SEC Chair Paul Atkins has introduced “Project Crypto”—a regulatory revamp designed to give digital asset firms more flexibility.

The initiative, inspired by a White House advisory report, proposes:

• Simplified licensing so brokerages can offer diverse crypto assets without redundant approvals.
• Clearer distinctions between crypto commodities (like Bitcoin) and securities (subject to stricter rules).
• Safe harbors for early-stage projects, shielding them from premature SEC enforcement.

Atkins argued that forcing startups into DAOs for compliance is counterproductive and stressed the need to protect self-custody rights.

The move comes as the US seeks to balance regulation with competitiveness, ensuring crypto firms aren’t driven offshore by excessive red tape.