The U.S. Securities and Exchange Commission (SEC) has launched “Project Crypto” to revamp digital asset regulations in the United States. This initiative, led by Chairman Paul S. Atkins, aims to clarify crypto assets classification and encourage on-chain transitions, potentially impacting market strategies and capital flows. The SEC’s focus will be on establishing clear and simple rules for cryptocurrency distribution, custody, and trading, recognizing that most cryptocurrencies are not securities. Project Crypto is expected to foster a deregulatory environment in financial markets, leading to increased activity and attracting technological talent back to the U.S. Stakeholder input will shape the new regulatory framework, fostering innovation and potentially increasing international crypto liquidity flows to the U.S.