U.S. SEC’s “Project Crypto” Speech Released: A Deepening Shift in Attitude Toward the Crypto Industry?
The SEC (U.S. Securities and Exchange Commission) has shown an interesting process of softening its stance on cryptocurrencies:
Stage One: The SEC harshly cracked down on crypto — fined when it could, investigated when it should, sued when it wanted.
Stage Two: Resistance started to ease — it still investigated, but stopped arbitrarily fining or suing.
Stage Three: The SEC stopped insisting on opposing crypto and began acknowledging it in public venues.
Stage Four, which is now: The SEC Chair suddenly dropped a bombshell — Project Crypto.
Project Crypto isn’t some impulsive, last-minute initiative — it’s a national strategic plan for the crypto sector.
If the SEC used to focus on regulation first, now they’re clearly pivoting toward embracing the on-chain world. The entire speech not only dialed down enforcement rhetoric, but repeatedly sent one clear message: America wants to lead in crypto — and the government is officially stepping onto the field.
Feeling like the market winds just completely shifted? Hold that thought. Let’s break this down in detail:
What exactly is Project Crypto, and what does the U.S. really want?
Put simply, Project Crypto is the SEC’s full-scale initiative to rebuild U.S. finance on-chain. The goal is clear: transition the U.S. from off-chain to on-chain finance, bring crypto firms back to the U.S. market, and reverse the “Web3 exodus.”
And this isn’t just talk — they’ve laid out five core action items:
- Full pivot to “on-chain finance”: rebuilding everything from clearing to trading
Historically, the SEC helped transition U.S. securities from paper certificates to electronic clearing. Now, it wants to transition from electronic to on-chain.
This isn’t a conceptual push — it’s a regulatory redesign. Even national clearing systems like ATS and Reg NMS are getting overhauled to accommodate blockchain-native asset structures.
In short: America wants to move its securities markets on-chain — and they’re serious.
- A new rules framework: stablecoins, tokenized equity, airdrops, staking — all now within scope
One of the biggest takeaways from the speech is the plan to build a new regulatory framework for crypto assets, including but not limited to:
Token Launches: No longer will everything be classified as a security. They will define clear categories: digital commodities, stablecoins, securities.
Airdrops and Network Rewards: No longer blanket enforcement — a new “safe harbor” will offer compliance pathways.
Staking and On-Chain Yields: These activities will be formally recognized within compliance structures — not arbitrarily banned.
Tokenized Equity: Traditional securities can be tokenized and launched on-chain — as long as they go through proper processes, the U.S. market welcomes them.
Compare this to a few years ago — this is a complete 180.
- The “super app” vision: one license, all crypto products
The SEC wants to promote integrated platforms that can:
Trade non-security tokens like BTC and ETH
Offer tokenized securities and crypto bonds
Provide staking, lending, and yield products — all in one place.
In other words: the future isn’t fragmented exchanges with complex KYC trees and layered registrations. One SEC license could cover everything — a massive tailwind for U.S. Coinbase, Robinhood, and eToro.
- Custody rights on-chain: self-custody wallets now recognized as legal
Here’s a sensitive but important point: the SEC has officially recognized self-custody wallets as a legitimate form of financial ownership.
For years, there’s been fierce debate between self-custody (e.g. MetaMask, Ledger) and third-party custody (e.g. Coinbase Custody). The SEC now says:Self-custody reflects personal financial freedom. Third-party custody must have clearer exemptions and standards — no more blanket bans.
For DeFi users, hardware wallet holders, and wallet manufacturers like Ledger and Trezor, this is a huge green light. You’re not in a gray area anymore — regulation can coexist with you.
- Bringing DeFi into U.S. regulatory frameworks: not an enemy, but an “on-chain partner”
This is arguably the most shocking part of the speech. The SEC Chair made it clear:DeFi should not be marginalized — it should be part of the financial system.What does this mean?
The U.S. will attempt to:
Grant DeFi protocols a legal identity as “non-intermediary but operable” platforms
Protect DeFi developers from baseless lawsuits
Acknowledge the role of AMMs and on-chain derivatives
Possibly offer limited exemptions for non-registered DeFi platforms
Once feared as the target of government crackdowns, DeFi now has a path to legitimate, U.S.-compliant operations — if it’s willing to cooperate.
The deeper chessboard: politics, economics, and the crypto playbook
Let’s not forget — Project Crypto isn’t just financial reform. There are deeper strategic motives here:
- Trump administration reclaims crypto policy leadership
This isn’t just an SEC initiative — it’s part of a presidential strategy. Project Crypto is backed by the GENIUS Act signed by Trump.
In plain terms: The U.S. wants to build a nation-level crypto financial infrastructure, directly competing with China’s digital yuan and the EU’s MiCA framework.
Stablecoins as the dollar’s second battlefield
At the heart of the GENIUS Act lies a U.S. dollar stablecoin strategy. Project Crypto’s new rules for token issuance are aimed at making compliant stablecoins (like USDC, PYUSD) tools for international dollar expansion.Repatriation of crypto capital
By offering clear token classification, trading licenses, and custody exemptions, the U.S. wants to bring Web3 companies back home.
Ran off to Singapore, Dubai, or the Caymans? No problem. Now they’re saying: “We’ll give you a better environment — come back.”
Why this is the real turning point for crypto
With the SEC actively promoting on-chain finance, this isn’t just a localized improvement — it’s a system-wide upgrade for the crypto ecosystem. Expect at least three structural shifts:
Asset valuation models will structurally evolve
DeFi tokens, stablecoin platforms, Super App exchanges, even on-chain KYC tools — all previously driven by speculation — will now carry U.S. regulatory premiums.Web3 funding and VC landscape will be reshuffled
Clarity means legitimacy:
U.S.-based Web3 VCs will return
More crypto IPOs could hit U.S. markets
Projects no longer need to go through offshore detours — they can launch directly in the U.S.
- The next bull run now has a clear policy catalyst
Forget interest rates, halvings, or ETFs. The true policy ignition point for the next cycle might very well be this U.S. national crypto strategy.
Final thoughts
There’s no doubt — the SEC’s stance this time is unprecedented in openness. Project Crypto is more than regulatory redesign — it’s a full Web3 reshuffle. As the SEC Chair put it:“From agreements under the buttonwood tree to smart contracts on-chain, we are entering the next chapter of financial history.”
