The Securities and Exchange Commission (SEC) has taken its biggest step yet in regulating cryptocurrency by launching “Project Crypto,” a comprehensive roadmap for the commission’s approach to crypto assets. The plan aims to make the US the “crypto capital of the world” through onshoring, updating regulations, and encouraging innovation in tokenization and decentralized finance initiatives.
SEC Chairman Paul Atkins outlined the project, which includes opening the door to reclassifying most crypto assets as investment contracts rather than securities. This move is a significant shift from former chairman Gary Gensler’s strict regulatory approach, which led to criticism that it was stifling American crypto innovation.
The new plan comes on the heels of President Trump’s push for crypto legitimization, including the establishment of a federal crypto working group and signing into law the Genius Act, a bill establishing the first federal regulatory framework for stablecoins. The move has been welcomed by the crypto industry, but critics argue that it overlooks potential risks associated with cryptocurrency.
The SEC’s plan focuses on legitimizing on-chain technology in the financial system, which seems to be working, with big companies like J.P. Morgan and Bank of America exploring blockchain projects. However, experts warn that crypto also poses significant challenges, including money laundering, sanctions evasions, and scams.
One major concern is Trump’s own conflict of interest, as his family runs several crypto projects, creating a perceived blurring of lines between personal business interests and official policy. Critics argue that the SEC’s regulatory actions could be seen as self-dealing. As Senator Elizabeth Warren noted, “Trump is using the presidency to enrich himself through crypto, and he’s doing it in plain sight.”
Source: https://gizmodo.com/the-sec-shifts-gears-on-crypto-2000638314