SEC Chairman Paul Atkins announced the "Project Crypto" initiative in 2025 with comprehensive rulemaking planned for 2026 in the United States. The initiative aims to clarify crypto asset classifications, improve market transparency, and support institutional expansion, potentially altering market dynamics for Bitcoin, Ethereum, and stablecoins.
The SEC, under Paul Atkins’ leadership from 2025, has launched Project Crypto, intending to modernize crypto regulation in 2026. New rules will provide clarity on crypto trading and custody, and aim for coordinated oversight with the CFTC.
Paul Atkins, replacing Gary Gensler as SEC Chair, focuses on a framework supporting innovation and agency coordination. This represents a shift from the previous enforcement-heavy methods and aims to deliver a more transparent regulatory landscape.
Institutional Investment in Crypto Expected to Rise
The regulatory changes are set to enhance market clarity and boost institutional investment in cryptocurrencies. Approval of crypto ETPs is expected to facilitate market expansion, potentially impacting tokens like Bitcoin and Ethereum significantly.
Market participants anticipate increased liquidity and integration due to the SEC’s endorsement of a transparent framework. Clarity in crypto rules is expected to impact DeFi protocols and Layer 1 networks, though specific data on changes remain limited.
Atkins' Regulatory Shift from Enforcement to Framework
While Gensler’s SEC focused on tackling fraud, Atkins’ initiative marks a shift to defining regulatory frameworks. Comparable transformations in the past provided mixed results for crypto businesses, revealing both opportunities and challenges.
Kanalcoin experts highlight potential for improved market stability and investor confidence under the new framework. The focus on clear regulations may address historical uncertainties, supporting broader acceptance of digital assets.
"The Commission intends to codify many principles into formal rulemaking, including a token taxonomy and tailored exemptions to modernize the regulatory framework governing crypto trading and custody.”
Paul Atkins, SEC Chairman