The SEC is taking a bold step towards modernizing U.S. securities regulations, announcing ‘Project Crypto,’ designed to adapt laws for the emerging blockchain era. This initiative seeks to clarify federal securities law application to new technologies and practices, fostering innovation while setting the stage for America as a leader in digital finance. 2025 marked a significant launch of ‘Project Crypto’ by SEC Chairman Paul Atkins. He emphasized the need for clear guidance on applying federal securities laws to emerging technologies and financial activities, aiming to position the U.S. at the forefront of digital finance. The initiative signifies a shift from enforcement-focused approach to proactive rulemaking. This will create regulatory clarity for new digital finance models and encourage increased activity in staking protocols like Ethereum. This move could attract institutional investments and bring capital inflows into the U.S., ultimately shaping the landscape of American financial markets. The SEC’s stance on liquid staking provides a clearer understanding that these activities are not securities, potentially boosting activity on platforms like Ethereum.