- SEC’s Project Crypto to modernize outdated rules for blockchain-based securities.
- Tokenized assets gain regulatory focus for better market integration and efficiency.
- SEC targets investor protection and transparency in blockchain trading environments.
Paul Atkins, the Chairman of the U.S. Securities and Exchange Commission (SEC), has announced a new regulatory initiative called “Project Crypto.” The program’s goal is to integrate blockchain technologies directly into the U.S. capital markets. The project will focus on rewriting existing securities rules to fit the new digital asset economy and allow for broader on-chain market activity.
Atkins stated that most current SEC regulations were built for a different era, with traditional, manufacturing-focused companies in mind, and simply don’t work for today’s crypto financial structures. As part of Project Crypto, the SEC will review all of its existing rules and consider repealing those that are now outdated in a tech-driven financial world.
Related: SEC Brings Out “Project Crypto” to Make U.S. the Blockchain Capital of the World
This effort is designed to clear the path for innovations like tokenized securities—assets structured like ETFs or mutual funds but issued and traded on a blockchain. Atkins highlighted the real-world efficiencies of tokenization and said the SEC is working to make sure disclosure and issuance rules are a good fit for these new structures.
Blockchain-Based Trading and Price Transparency
The SEC chairman also addressed the major issue of investor protection in a blockchain-based trading world. He pointed to the inherent transparency of blockchain technology itself as a powerful tool for real-time pricing and valuation, especially in actively traded markets.
Atkins noted that as more securities move to blockchain platforms, the market will naturally adopt standard tools for price discovery, like the national best bid and offer systems used in stock markets today. He said a key goal of Project Crypto is to ensure a level playing field for both traditional and tokenized assets.
Related: SEC Chairman Paul Atkins: Single New Framework Coming for Crypto and Traditional Securities
He also acknowledged that the future of finance is still uncertain and stressed that the SEC must remain flexible. He said the agency must avoid becoming a “Procrustean bed” that tries to force all new innovation into old, ill-fitting regulatory boxes. Instead, Atkins emphasized the need for an open approach that supports a true integration between the old and new financial systems.
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