- SEC Project Crypto aims to modernize rules and support financial markets moving on-chain by 2026.
- SEC and CFTC plan a joint framework to classify digital assets and reduce regulatory overlap.
- Updated custody and market rules could shape tokenized securities and crypto derivatives.
The U.S. Securities and Exchange Commission is moving ahead with a broad regulatory initiative to support the transition of financial markets to blockchain-based infrastructure, according to SEC Chairman Paul Atkins. Speaking about the agency’s Project Crypto initiative, Atkins said the SEC has spent the past year updating its approach to digital assets in response to President Donald Trump’s call to make the United States the global leader in cryptocurrency.
He said the effort includes modernizing securities regulations, providing greater clarity for digital asset issuers, and strengthening coordination with other financial regulators as the agency prepares new frameworks expected to be issued through mid-2026.
SEC Details On-Chain Market Strategy
Atkins said the SEC is taking what he described as historic steps to modernize existing rules and regulations to support on-chain market activity. According to his remarks, the agency has focused on providing clearer guidance so digital asset issuers and entrepreneurs can determine before launching a project whether a token qualifies as a security and falls under SEC oversight.
He stated that the initiative is intended to establish clear regulatory standards rather than provide special treatment for the digital asset industry. Atkins added that transparent rules are necessary for markets to operate effectively and that regulatory clarity remains a central objective of the commission’s ongoing work.
SEC and CFTC Expand Regulatory Coordination
The SEC is also working with the Commodity Futures Trading Commission to improve oversight across the digital asset sector. Under current plans, a Memorandum of Understanding between the two agencies is expected by March 2026.
The agreement is intended to establish joint frameworks for classifying tokens that do not fall under securities laws while reducing overlapping regulatory responsibilities. Atkins said the goal is to replace what he described as a fragmented regulatory environment with a more coordinated approach.
Rule Updates Target Mid-2026 Timeline
The regulatory program also includes updates to existing market structure rules, including Regulation NMS. The SEC plans to introduce regulatory pathways that can accommodate blockchain-based trading systems alongside traditional exchanges by mid-2026.
According to the outlined framework, the agency’s custody standards for tokenized securities could influence whether banks are permitted to hold these assets for clients. The planned coordination with the CFTC is also expected to establish a clearer regulatory structure for crypto derivatives that currently operate within an uncertain legal framework.
Related: SEC Chairman Says Crypto Rules Need Congress as Senate Talks Drag On
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
