Crypto News Today: US Securities Regulator Outlines Blockchain Integration Plan Under Project Crypto

The US Securities and Exchange Commission has launched “Project Crypto,” a policy initiative that aims to bring blockchain tools into the US market infrastructure. SEC Chairman Paul Atkins has framed the effort as a modernization project for capital markets that would accommodate tokenized assets without replacing the existing financial system.

SEC “Project Crypto” Targets Clearer Rules for Tokenization

Atkins introduced Project Crypto as the agency’s push to update how it applies federal securities laws to digital assets. The initiative focuses on how tokens function in practice and how market participants should classify, issue, and trade them. The SEC expects this approach to support innovation while preserving core standards for disclosure and market integrity.

The project highlights tokenization as a key use case for regulated markets. Tokenized securities would remain securities under the current legal framework, even when firms record ownership on a blockchain ledger. The message signals that the SEC wants to integrate on-chain efficiency into existing market structures rather than promote a full shift toward crypto-native rails.

Tokenized Equities Gain Attention in US Market Structure Talks

The SEC’s Investor Advisory Committee devoted part of its December 4 meeting to the tokenization of equities and how issuance, trading, and settlement could work under existing rules. The agenda shows that the Commission wants public input on market plumbing, investor rights, and the role of intermediaries in an on-chain environment. The meeting also discussed corporate governance priorities.

Regulators and industry participants have emphasized that tokenized stock products do not all look alike. Some tokens may offer direct, one-to-one backing, while others provide exposure through derivative-like structures. Reuters has reported that this variety can leave investors uncertain about voting rights, dividend entitlements, and bankruptcy protections, depending on the product design.

“Innovation Exemption” Debate Highlights Competing Priorities

Project Crypto has intersected with the discussion of an SEC “innovation exemption,” a possible pathway that could let firms test new tokenized models under defined supervision. Atkins has linked exemptions and a future token classification system to a broader framework that could complement congressional market structure efforts.

Traditional market groups have urged restraint. The World Federation of Exchanges warned that broad relief could weaken market integrity and create uneven standards between registered exchanges and crypto platforms offering stock-linked tokens. Reuters reported that the group supports innovation but wants a level playing field across market venues.

Citadel Securities has taken a similar position in a December 2 letter. The firm said tokenized equity trading should follow established investor protection principles and should move forward through formal rulemaking rather than wide exemptions. The letter underscored pressure on the SEC to balance efficiency goals with consistent oversight across venues.

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