SEC Seeks Clear On-Chain Financing Rules: Project Crypto
SEC Chair Paul Atkins called for clear on-chain financing rules, arguing most crypto tokens are not securities and urging an end to legal uncertainty. He launched Project Crypto to modernize securities laws for blockchain markets. The initiative will set precise token classification criteria, create a unified licensing framework, and allow platforms to offer trading, lending, and staking services under one regulated regime.
This push complements U.S. stablecoin (GENIUS Act) and digital asset jurisdiction (CLARITY Act) bills, marking a shift from ad hoc enforcement to consistent rulemaking. Atkins highlighted global competition, praised Commissioner Hester Pierce’s crypto working group, and announced a joint SEC-CFTC roundtable on Sept. 29 to discuss DeFi and perpetual contracts. By clarifying on-chain financing processes, the plan aims to reduce compliance costs, foster super apps, and keep capital within U.S. markets.
Bullish
By clarifying token classification and licensing requirements, Project Crypto reduces legal risks and compliance costs. This clarity should encourage platforms to expand on-chain financing and DeFi services in the U.S., attracting capital and improving liquidity. Coupled with stablecoin and jurisdiction bills, the move signals a supportive regulatory environment, boosting trader confidence. Therefore, the news is bullish for crypto markets as it facilitates growth and innovation.