SEC chair backs crypto regulatory overhaul

• SEC Chair Paul Atkins said the agency is modernising its regulatory framework to support digital asset markets in the United States.
• The SEC said Project Crypto aims to integrate blockchain-based markets into the broader financial system while providing greater regulatory clarity.
• Atkins said the agency has clarified that four of five cryptocurrency categories are not securities under its updated framework.

The U.S. Securities and Exchange Commission (SEC) said it is advancing a new regulatory approach to digital assets, with Chair Paul Atkins outlining plans to modernise rules under the agency's Project Crypto initiative.

Atkins said the updated framework responds to President Donald Trump's objective of making the United States a global centre for cryptocurrency, replacing the previous administration's enforcement-led approach with clearer regulatory guidance.

“We are taking historic steps to facilitate on-chain market movement by modernising our rules and regulations,” said SEC Chair Paul Atkins.

Atkins said the SEC has introduced a clearer classification system for digital assets, stating that four of five cryptocurrency categories are not considered securities, allowing investors and businesses to better understand regulatory requirements before launching products.

The SEC said Project Crypto is intended to support greater integration between blockchain-based markets and the traditional financial system, and following the announcement there was no immediate market reaction.

Atkins said uncertainty under the previous regulatory framework contributed to digital asset companies and entrepreneurs moving operations outside the United States, prompting the agency to revise its approach.

Project Crypto forms part of the SEC's broader regulatory agenda as the agency continues developing rules for cryptocurrency markets alongside legislative efforts in Congress to establish a comprehensive digital asset framework.