SEC advances Project Crypto to clarify digital asset rules
A proposed overhaul of US crypto regulation could make the country more attractive for digital asset businesses seeking greater legal certainty.
The US Securities and Exchange Commission is advancing its Project Crypto initiative as part of a broader effort to provide clearer rules for digital assets.
SEC Chair Paul Atkins has framed the initiative as a shift away from uncertainty over how federal securities laws apply to crypto assets and related transactions.
The agenda includes work on a token taxonomy anchored in the Howey investment-contract analysis, while recognising that not every crypto asset is itself a security.
In March 2026, the SEC issued an interpretation, joined by the Commodity Futures Trading Commission, clarifying the treatment of digital commodities, digital collectables, digital tools, stablecoins and digital securities.
The interpretation also addressed how non-security crypto assets may become subject to an investment contract and later cease to be subject to one.
It clarified the application of federal securities laws to airdrops, protocol mining, protocol staking and wrapping of non-security crypto assets.
Atkins has also directed SEC staff to develop proposals that could allow broker-dealers and alternative trading systems to offer crypto asset securities, non-security crypto assets, traditional securities, staking and lending services under a more efficient licensing structure.
The SEC says it will continue working with the CFTC, banking regulators and Congress as lawmakers consider a broader crypto market-structure framework.
Why does it matter?
Project Crypto signals a major shift in the SEC’s approach to digital assets, from enforcement-driven uncertainty towards taxonomy, interpretation and possible rulemaking. Clearer distinctions between securities, non-security crypto assets and tokenised securities could make it easier for firms to understand which rules apply. However, many elements remain dependent on future SEC action and congressional market-structure legislation, so the initiative should be treated as an evolving regulatory agenda rather than a completed framework.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!