SEC’s Project Crypto Overhauls US Rules to Boost BTC & ETH
Project Crypto is the SEC’s landmark initiative launched in July 2025 to modernize US digital asset regulation. Project Crypto introduces an innovation exemption and reclassifies many tokens out of the securities category, simplifying token listings and reducing compliance burdens for BTC, ETH and DeFi protocols. Led by SEC Chair Paul Atkins, Project Crypto translates recommendations from the President’s Working Group into clear token-classification and trading guidelines. The overhaul aims to attract institutional investment, improve liquidity and boost trading volume on US exchanges. Traders should watch for upcoming policy details and legislative changes, as these could trigger increased investment, market growth and shifts in sentiment for major cryptocurrencies.
Bullish
In the short term, Project Crypto’s clear guidelines and innovation exemption reduce legal uncertainty, likely boosting trading activity for BTC and ETH on US exchanges. As compliance burdens ease, institutional investors may allocate capital to digital assets, driving demand and price appreciation. Over the long term, the regulatory overhaul strengthens market infrastructure and fosters liquidity, encouraging deeper market participation. Historical precedents—such as regulatory clarity in other jurisdictions—have correlated with price rallies for major cryptocurrencies. Therefore, traders can anticipate a sustained bullish trend as Project Crypto implementation unfolds.