The U.S. Securities and Exchange Commission on Thursday launched “Project Crypto,” an initiative to update securities rules and regulations to allow crypto-based trading. U.S. Securities and Exchange Commission Chairman Paul Atkins spoke at the "American Leadership in the Digital Financial Revolution" conference on Thursday afternoon.Said: “To realize President Trump’s vision of making the United States the cryptocurrency capital of the world, the SEC must consider all aspects ofThe potential benefits and risks of moving our markets from an off-chain to an on-chain environment. ” He was referring to those that support cryptocurrencies but also have other applications.Blockchain technology.
“I have directed Commission staff to update outdated agency rules and regulations to unlock the potential of on-chain software systems in our securities markets…Federal securities laws have always presumed that the participation of intermediaries requires regulation, but that does not mean that we should step in for the sake of forcing intermediaries when markets can function normally without intermediaries.”
The announcement comes amid rising investor interest in tokenization. Tokenization is the issuance of a digital representation of a publicly traded security, real-world asset, or any other valuable asset on a blockchain network. The holder of a tokenized asset does not have full ownership of the asset itself. BlackRock CEO Larry Fink has said that he believes "the tokenization of all financial assets" is an important step in the "technological revolution in financial markets."
Crypto trading platforms Robinhood, Gemini and Kraken have all opened tokenized stock offerings to users outside the United States, and Coinbase said it is seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer similar services.
SEC Chairman Atkins emphasized that "super apps" such as the one launched by Coinbase two weeks ago are a top priority of his tenure as chairman, citing the need to allow these applications to flourish under an "efficient licensing structure" rather than being overseen by multiple regulators.
So-called super apps such as WeChat and Alipay - which combine multiple different services and functions into a single mobile app - have long been considered by the industry as the Holy Grail of fintech. They occupy a central place in daily life in China but have not been successfully replicated in the West. Meta Platforms and X have attempted to realize this vision, integrating payments, messaging, social content, and more.
Atkins also said the Trump administration would work to prevent "innovative" companies from being driven overseas by burdensome regulations, saying the SEC "will encourage innovative domestic businesses rather than restrict them with red tape and one-size-fits-all rules."."
The SEC’s proposal comes just one day after the President’s Task Force on Digital Asset Markets released a long-awaited report in which it recommended that the SEC and other federal agencies establish a framework to enhance U.S. dominance in digital asset markets. Atkins said he has directed the SEC Cryptocurrency Working Group, led by Commissioner Hester Peirce, to work with other SEC departments to implement the working group’s recommendations.
Thursday's meeting was sponsored by the America First Policy Institute, a think tank founded in 2021 to promote President Trump's policy agenda. The institute was founded by current Agriculture Secretary Brooke Rollins and former Trump National Economic Council Director Larry Kudlow.