The US Securities and Exchange Commission (SEC) has unveiled Project Crypto, an initiative aimed at modernizing regulations on digital assets, as reported by CNBC on Thursday.
SEC Chairman Paul Atkins announced the plan, saying it is a response to recommendations from the President's Working Group on Digital Assets.
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Key proposals include:
- Streamlining the licensing of brokerage firms so they can manage multiple asset classes with a single license.
- Clarifying the market structure by distinguishing between commodities (which include most cryptocurrencies) and securities.
- Offering exemptions or grace periods for early-stage crypto projects, ICOs, and decentralized software in order to encourage innovation.
Atkins has also emphasized cryptocurrency companies should not be forced to establish DAOs to circumvent regulation and has called for legal protections for self-custody.