Sec Advances Project Crypto For On-Chain Markets

U.S. Securities and Exchange Commission is advancing SEC Project Crypto as Chairman Paul Atkins outlines plans for blockchain-based financial markets. The initiative focuses on modernizing securities rules, improving token classification, and supporting market systems that can operate on-chain. Atkins said the agency has spent the past year adjusting its approach after President Donald Trump called for U.S. leadership in cryptocurrency. The SEC expects several rulemaking steps to continue through mid-2026.

Sec Sets Direction For On-Chain Markets

Atkins said SEC Project Crypto marks a broad effort to prepare existing market rules for blockchain infrastructure. He described the agency’s work as “historic steps” toward modernizing regulations for on-chain market activity. The plan aims to help issuers understand whether a token falls under securities laws before they launch a project. That clarity could reduce legal uncertainty for crypto startups, token issuers, and regulated trading platforms.

The SEC chairman said the initiative does not give the digital asset industry special treatment. Instead, he said the agency wants clear regulations that allow markets to operate under known rules. This approach places disclosure, investor protection, and market integrity at the center of the SEC’s digital asset agenda. It also signals that the agency wants blockchain finance to fit within regulated market structures.

Sec And Cftc Work On Joint Framework

The SEC also plans deeper coordination with the Commodity Futures Trading Commission. Under the current timeline, both agencies expect a Memorandum of Understanding by March 2026. The agreement should help classify digital assets that do not qualify as securities. It also aims to reduce overlap between the two regulators.

Atkins said the goal is to replace a “fragmented regulatory environment” with a more coordinated structure. This matters because many crypto products combine trading, custody, payments, and derivatives features. Clearer coordination could help firms understand which regulator oversees each product. It may also reduce delays for platforms that want to offer compliant digital asset services.

Rule Changes Target Custody And Trading

SEC Project Crypto also includes updates to market structure rules, including Regulation NMS. The SEC wants pathways that allow blockchain-based trading systems to operate alongside traditional exchanges. These changes could affect tokenized securities, settlement systems, and digital asset trading venues. The agency expects key rule updates by mid-2026.

Custody rules remain another major focus for the commission. Updated standards could determine whether banks can hold tokenized securities for clients. The SEC-CFTC framework may also shape crypto derivatives that now operate in a less settled legal environment. As a result, SEC Project Crypto could influence how on-chain markets connect with U.S. financial institutions.

URLS:
https://x.com/SECGov/status/2072745983088160996?s=20