US to Modernize Securities Rules to Boost Crypto Industry

Speaking at the America First Policy Institute in Washington on Thursday, 31 July, SEC Chairman Paul Atkins announced plans to accelerate efforts to help US financial markets “move on-chain.” 

The announcement follows the release of a comprehensive crypto policy report from the Trump administration on Wednesday, 30 July, which urges regulators to develop and implement new frameworks to support the growth of the domestic US digital asset industry. 

Easing compliance burdens and simplifying licensing for trading platforms will, if implemented successfully, create a regulatory environment that brings crypto out of regulatory limbo. 

However, much of SEC’s new approach to digital asset regulation remains untested, and it is unclear whether reduced enforcement could introduce systemic risks that are not yet fully understood. 

Crypto is crypto  

Notably, Chairman Atkins said most digital assets would not count as securities, exempting them from strict SEC oversight.  

This interpretation from the SEC, if applied to existing rules, would ease compliance burdens for investors and potentially open the door for broader market participation, providing greater legal clarity and confidence.  

“The commission and its staff will in the coming months consider using interpretative, exemptive and other authorities to make sure that archaic rules and regulations do not smother innovation and entrepreneurship in America,” said Chairman Atkins in his speech.  

Boost for innovation  

By streamlining regulations, Project Crypto would mark a turning point for US digital asset policy.  

Previously, the SEC’s interpretation of crypto as a security kept most digital assets in a so-called “grey zone” of legality. However, this was under Chairman Gary Gensler during the Biden administration, and it was combined with limited regulatory frameworks.