SEC Chairman and CFTC Chairman Launch Project Crypto to Unify Crypto Regulation

According to the SEC's official website, SEC Chair Paul S. Atkins and CFTC Chair Mike Selig have officially launched the Project Crypto joint initiative. This initiative aims to coordinate the regulatory standards of the two agencies for the cryptocurrency market in response to the bipartisan market structure legislation being advanced by Congress.

Paul S. Atkins stated that the current regulatory model is struggling to adapt to the reality of technological convergence, and fragmented regulation has become a source of confusion for investors rather than protection. Project Crypto will seek to establish a unified framework in areas such as trading, clearing, custody, and risk management, and will follow the principle of minimal effective dose for moderate regulation. Additionally, SEC staff have provided guidance over the past year on aspects such as Memecoins, stablecoins, mining, staking, and broker-dealer financial responsibilities, clarifying that registered advisors and regulated funds may hold cryptocurrency assets in certain state-chartered financial institutions. This initiative marks a shift in regulatory focus from enforcement-driven actions to the clarification of rules, aiming to reduce compliance costs through inter-agency collaboration.