Key Takeaways
Clearer Rules for Crypto Assets – The SEC is moving away from vague “regulation by enforcement” toward a transparent framework that classifies digital assets and gives builders legal certainty.
Modernized Regulations – Outdated custody rules will be updated, a single “super-app” license will simplify compliance, and both traditional and decentralized markets will be accommodated.
Innovation-Friendly Approach – The new “Innovation Exemption” will create a regulatory fast lane for new products, encouraging experimentation while protecting investors.
Catalyst for U.S. Crypto Leadership – With clarity and support, the U.S. aims to attract global talent, spur institutional investment, and accelerate adoption of blockchain-based products and services.
Intro
So far, 2025 has been a landmark year for the crypto industry. The President of the United States has declared he wants to make the U.S. the “crypto capital of the world,” stablecoin legislation has been signed into law, and now SEC Chairman Paul Atkins is launching “Project Crypto.” Those who were around crypto during the Gary Gensler era know the damage that “regulation by enforcement” did to the industry. Crypto talent innovated overseas, U.S. customers were restricted from participating in certain onchain activities, and institutional crypto adoption grinded to a halt.
With the launch of Project Crypto however, the SEC is making a major pivot towards global crypto dominance. In this research brief, we discuss 5 key takeaways from the SECs newest initiative and what it could mean for crypto markets moving forward.
Project Crypto: 5 Key Takeaways
Chairman Atkins opened his speech acknowledging that U.S. financial markets have innovated and transformed over the last two centuries. We went from the Buttonwood Agreement in 1792 which laid the foundation for the New York Stock Exchange, to paper stock certificates that were physically traded up and down Wall Street in the 1960s, to the fully electronic experience we know today.
Looking forward, Chairman Atkins believes crypto is the next evolutionary step for U.S. financial markets, offering improvements in speed, efficiency, and transparency. He believes leaning into crypto’s innovative potential is critical for attracting “a nation of builders,” and ensuring U.S. financial markets remain the cornerstone of the global economy.
As we move through the key takeaways, there is one theme that we want to make clear. The SEC is embracing crypto and wants reasonable, accommodating regulation that keeps investors protected.
1. Clarity on Asset Classification
Old SEC: Use the subjective Howey Test to determine if the crypto asset you want to launch is subject to federal securities laws. If the SEC decides you are subject to securities laws and are in violation of them, we’ll sue and shut you down.
New SEC: Here’s a clear framework detailing different crypto token categories. Let’s work together to ensure you have clarity on where your asset fits in the framework, so you can operate with confidence.
Under Gary Gensler, the SEC did a poor job of providing clarity on whether a digital asset is a security or not. Chairman Atkins stated that most digital assets are not securities and wants the agency to provide clear categories (such as digital collectibles, digital commodities, or stablecoins) for market participants to slot into.
If a digital asset does qualify as a security, he wants the SEC to have a clear regulatory framework that allows crypto asset securities to flourish within U.S. markets. Chairman Atkins wants builders to choose the U.S. for its legal certainty and an accommodating regulatory environment, rather than exclude Americans to avoid complexity and unclear rules. Decentralized finance (DeFi) offers exciting ways for token holders to benefit from a protocol’s success, and Chairman Atkins wants to make sure Americans can take advantage of the opportunity if they wish.
2. Modernization Outdated Custody Rules
Old SEC: The current custody laws didn’t consider crypto, but we don’t plan to overhaul them. You’ll need to jump through hoops to be compliant.
New SEC: Let’s not overburden intermediaries with outdated custody regulations. Let’s give you options based on the type of business you are trying to run.
One of crypto’s unique attributes is the ability to self-custody your digital assets. As Chairman Atkins explains, “the right to have self-custody of one’s private property is a core American value.” The current custody laws and regulations weren’t built with crypto or self-custody in mind. Project Crypto will aim to modernize the SEC’s custody requirements for registered intermediaries, ensuring they have options which are efficient for their line of business while adequately protecting investors.
3. Support For "Super-Apps"
Old SEC: You’ll need 50 state licenses and multiple federal licenses if you want to offer financial services across the U.S.
New SEC: We should just have “one license to rule them all,” it simplifies things for everyone.
Embracing crypto means being able to support a wide variety of financial products and services (i.e. stablecoins, trading, lending, etc.). The SEC wants to make it simple for companies and institutions to offer all those services under a single license. Under the “Super-App” vision, users should be able to trade traditional securities, security digital assets, and non-security digital assets next to one another on the same platform.
The goal here is to not constrain innovation to just the large institutions that can bear the regulatory burden. To Chairman Atkins, a greater choice in venues means more competition, which ultimately benefits the consumer.
4. Making Room For Decentralized Finance
Old SEC: All financial markets require intermediaries, let’s exclusively build rules and regulations based on that assumption.
New SEC: Crypto has shown us that you don’t always need an intermediary to operate financial markets. Let’s make sure traditional and decentralized markets can operate efficiently and fairly.
Federal securities laws have always assumed that an intermediary is present and requires regulation. Decentralized finance (DeFi) has shown us that this doesn’t have to be the case through technologies like automated market makers. Chairman Atkins wants to ensure there is room for both traditional and decentralized financial markets. Acknowledging that there are multiple ways for financial markets to succeed is key, and it serves as the foundation for traditional financial institutions to eventually move onchain.
5. Creating An "Innovation Exemption"
Old SEC: Be careful about what new products and services you decide to launch. We won’t work with you to provide regulatory clarity, and if we think you’re violating securities law, we’ll shut you down.
New SEC: Want to try something new that doesn’t neatly fit within current security laws? Great, let’s make sure your product aligns within some guardrails to protect investors, and we’ll finalize more formal rules and regulations over time.
In his introduction, Chairman Atkins noted “the future is arriving at full speed—and the world is not waiting.” With this in mind, he wants the SEC to develop a regulatory fast-lane that would allow new products and business models to come to market, even if they don’t fully comply with existing rules and regulations. The “Innovation Exemption” would be there to encourage new products, while ensuring principles-based conditions are met to meet the goals of federal securities laws.
Wrap Up: Where The Puck Is Heading
In plain english, Project Crypto is a big deal. It sets the tone for the SEC’s posture towards crypto going forward: one that embraces its innovative potential rather than stifling it. As progress on Project Crypto moves forward, we believe we’ll see the following:
Greater Institutional Capital Inflows: Regulatory clarity has been the biggest hurdle for institutional investors. With a clear rulebook, we should expect a significant influx of capital from traditional finance players who have been waiting on the sidelines. This should drive up market valuations and increase liquidity across the board.
New Innovative Products: By making the U.S. a more welcoming and predictable environment, Project Crypto will encourage entrepreneurs to build here rather than abroad. Capitalism will ensure the products which add the most value will thrive, and the U.S. will attract human and monetary capital as the leader in blockchain-based innovation.
Accelerated Crypto Adoption: The roll out of new products, services, and “super-apps”, will make crypto more accessible to the average person. Increasing accessibility will shine a light on crypto’s benefits and make people more comfortable with the technology. Growing consumer adoption will encourage more companies to build blockchain-based applications, which will cement crypto’s role as critical societal infrastructure.
Overall, we are very bullish on Project Crypto’s potential. It aims to set clear rules of the road, while embracing innovation and ensuring investors are protected. Project Crypto has the potential to significantly boost onchain activity with both consumers and institutions. For the investor who understands which protocols will be critical in this transition, the rewards could be massive.
About Triple Point Strategy
Triple Point Strategy is a research firm and crypto investment manager. We operate the Marietta DeFi Fund, a crypto investment fund that is focused on capital appreciation and DeFi-native income strategies. It is currently available to U.S. accredited investors. Subscribe below to receive our latest insights directly in your inbox.
For U.S. accredited investors only. Offered under Rule 506(c) of Regulation D. This content is for informational purposes only and does not constitute financial, investment, or tax advice. This is not an offer to sell or a solicitation to buy any security. Any investment may only be made through the Fund's confidential offering documents. Investing involves risk, including possible loss of capital. Digital assets are volatile and subject to changing regulations.