The U.S. SEC launches "crypto projects" to drive financial markets on-chain

The U.S. Securities and Exchange Commission (SEC) launched a "crypto project" on Thursday aimed at modernizing securities rules to accommodate cryptocurrency-based trading models.

SEC Chairman Paul Atkins stated at the "America Leads the Digital Finance Revolution" conference held on Thursday afternoon local time: "To realize President Trump's vision of making America the global crypto capital, the SEC must comprehensively assess the potential benefits and drawbacks of transitioning the market from an off-chain environment to an on-chain environment." He referred to the blockchain technology that supports cryptocurrency operations, which also has other application scenarios.

Atkins said, "I have instructed the commission staff to update the agency's current outdated regulations to unleash the potential of on-chain software systems in the securities market. Federal securities laws have traditionally assumed that the involvement of intermediaries requires regulation, but that does not mean we should forcibly impose intermediaries in a market where they are not needed."

This statement comes as market interest in "tokenization" is rapidly increasing. Tokenization refers to the issuance of digital certificates on a blockchain network that can represent publicly traded securities, real assets, or other forms of value. Token holders do not have actual ownership of the assets themselves.

Larry Fink, CEO of BlackRock, has stated that he believes "the tokenization of every financial asset" is an important step in the technological revolution of financial markets.

Currently, crypto trading platforms Robinhood, Gemini, and Kraken have opened tokenized stock services to non-U.S. users, while Coinbase has also indicated that it is seeking SEC approval to offer similar services in the U.S.

"Super Apps"

Atkins also emphasized "super apps," such as the app launched by Coinbase two weeks ago. "Super apps" are a key focus during Atkins' tenure, and he pointed out that regulators need to provide an efficient licensing structure rather than subjecting these apps to overlapping regulation by multiple regulatory agencies.

"Super apps" are similar to China's WeChat and Alipay—they integrate multiple services and functions into a single mobile application and are seen as the "holy grail" of fintech. These apps have become central to daily life in China but have not yet been successfully replicated in Western markets. Meta and X (formerly Twitter) have both attempted to integrate payment, messaging, social content, and other functions to achieve similar goals.

Atkins also stated that the Trump administration will work to prevent "innovative" companies from being forced to relocate overseas due to excessive regulation and emphasized that the SEC will encourage the builders of the nation rather than constrain them with red tape and one-size-fits-all rules.

The day before this proposal was released, the U.S. government's Digital Asset Market Working Group published its long-awaited report, which proposed a framework for enhancing the U.S.'s dominance in the digital asset market to the SEC and other federal agencies. Atkins stated that he has instructed the SEC's crypto special working group (led by Commissioner Hester Peirce) to collaborate with other SEC departments to implement these recommendations Risk Warning and Disclaimer

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