The U.S. Securities and Exchange Commission (SEC) has launched Project Crypto, a strategic initiative aimed at modernizing digital asset trading regulations and enhancing market structure for cryptocurrencies such as Bitcoin and Ethereum [1]. The project is led by SEC Chairman Paul Atkins and Director of Trading and Markets Jamie Selway, who emphasize the need for a regulatory framework that supports innovation while ensuring investor protection [1]. The initiative focuses on transitioning to an on-chain market infrastructure, which is expected to improve market clarity and operational efficiency for digital assets.

Project Crypto introduces a tailored regulatory framework for digital assets, addressing challenges in token classification…