Overview

• Project Crypto was formally unveiled on August 1 as the SEC’s central initiative to modernize legacy securities regulations for on-chain markets.
• The SEC directed staff to develop clear guidelines determining when crypto assets should be classified as securities based on issuers’ commitments.
• Under the proposals, broker-dealers could offer multiple digital asset classes under a single license while custody requirements would be updated for tokenized securities.
• Project Crypto includes plans for tailored disclosures, exemptions and safe harbors aimed at encouraging American participation in crypto distributions under transparent rules.
• The initiative represents a shift from Gary Gensler’s enforcement-first stance toward a collaborative, principle-based framework designed to foster U.S. leadership in digital asset innovation.