Key Notes

• “Project Crypto” will draft new securities rules for tokenized assets and eliminate legacy regulations to boost capital formation.
• Most crypto assets won’t be classified as securities, with bright-line rules differentiating NFTs, stablecoins, and investment contracts.
• The initiative includes custody modernization and safe harbors for airdrops, enabling US investors to participate in on-chain finance.

On July 31, SEC Chairman Paul Atkins announced the launch of “Project Crypto,” a sweeping regulatory initiative designed to modernize securities law and bring US financial markets onto blockchain rails. Speaking at the America First Policy Institute, Atkins described the effort as a generational…