SEC and CFTC Relaunch Project Crypto to Clarify Digital Asset Regulation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have relaunched Project Crypto in a coordinated effort to provide regulatory clarity for the digital asset industry.

The initiative is part of a strategy to align the two agencies’ approaches to crypto markets and ensure U.S. financial leadership keeps pace with technological innovation.

Project Crypto Targets Clearer Crypto Rules

In a January 29 joint statement, SEC Chair Paul Atkins and CFTC Chair Heath Tarbert emphasized that “America’s financial markets are the strongest and most trusted in the world because they were built upon the premises of clear rules and fair enforcement.”

However, in recent years, under the Biden administration, enforcement actions and regulations were often unclear, creating uncertainty for market participants. Under President Trump’s leadership, the two groups have shared plans to return to core principles that emphasize transparency, predictability, and fairness. This effort will be advanced through Project Crypto, a joint initiative aimed at harmonizing digital asset regulation.

Project Crypto is designed to ready U.S. markets for a future in which trading, clearing, settlement, and custody increasingly occur on-chain.

The plan comes as Congress advances bipartisan legislation to establish a federal framework for digital assets. Despite this, the agencies believe that these rules alone are insufficient, noting that effective oversight requires “disciplined execution grounded in merit neutrality and free market principles.”

According to the press release, the initiative will focus on creating clear pathways for companies that comply with the requirements. This will involve updating the surveillance tools to reflect modern trading practices and implementing rules in a planned step-by-step manner.

Regulators also warned that failing to modernize could push innovation and investment to other countries with more accommodating markets.

Harmonization and Clear Oversight

A main objective of Project Crypto is to bring the SEC and CFTC into closer alignment, addressing fragmented rules and overlapping jurisdictions that have long made it difficult for businesses to operate efficiently.

The programme seeks to address these issues by aligning definitions, coordinating supervision, and sharing data securely between them. The two regulators also want to reduce duplication, provide clear guidance for investors and businesses, and support a market that is both innovative and well-regulated.

The relaunch builds on earlier efforts, including the SEC’s Project Crypto and the CFTC’s Crypto Sprint, and represents a modern approach to inter-agency coordination. By working together, the duo hopes to offer clarity for market participants, encourage innovation on U.S. soil, and ensure that the future of finance develops under oversight that protects investors while supporting progress.

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