SEC and CFTC Launch “Project Crypto” to Unite US Regulation

[Ben Graham]

The SEC and CFTC are turning “Project Crypto” into a single rulebook for how the United States polices digital-asset markets.

The US Securities and Exchange Commission and the Commodity Futures Trading Commission have formally reshaped Project Crypto into a joint effort to align federal oversight of digital-asset trading. 

Agency chairs Paul S. Atkins and Michael S. Selig confirmed the shift this week in Washington, D.C.

Both agencies outlined the plan in speeches on 29 January 2026, followed by a legal brief released on 30 January. 

BREAKING:

SEC LAUNCHES PROJECT CRYPTO TO MOVE ALL MARKETS ONCHAIN. pic.twitter.com/BNRqB2M6hE

— Crypto Rover (@cryptorover) July 31, 2025

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How Will Project Crypto Change US Crypto Regulation?

The goal is simple: cut down on overlapping rules and ease uncertainty as Congress moves closer to a bipartisan market-structure bill.

Notably, Project Crypto began in 2025 as an SEC program to update its approach to modern trading systems. 

It will now work as a shared framework covering on-chain trading, clearing, settlement, and custody across both regulators.

Atkins called the expanded program “one of the most ambitious initiatives between our two agencies in a generation.”

He said the focus is on setting a “minimum effective dose” of regulation instead of creating two versions of the same rulebook.

Under the new arrangement, the agencies will build a shared crypto-asset taxonomy, draw clearer lines between securities and commodities, and cut the duplicate registrations that now burden firms overseen by both regulators.

Selig said Project Crypto aims to bring “coordination, coherence, and a unified approach to the federal oversight of crypto asset markets.”

He called it a rare chance to move past long-running turf fights.

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What New Rules Are Coming for Tokenized Collateral and Leveraged Crypto Trading?

Officials also said a formal memorandum of understanding is coming. It will lock in data-sharing, joint surveillance, weekly leadership calls, and coordinated rulemaking. 

The goal is to make the system durable, no matter who holds the top jobs in the future.

The first priorities include safe-harbor ideas for software developers, new guidance on tokenized collateral, clearer rules for leveraged crypto trading, and a review of how prediction markets and event contracts should be treated.

The project is rolling out under President Donald Trump, whose administration has installed new leaders at both agencies and pushed to bring more crypto activity back onshore. 

Meanwhile, regulators continue to press Congress to pass the CLARITY Act and related bills. Though, they say they can still issue near-term guidance under current law.

A recent industry analysis said the joint plan is designed to remove “regulatory fragmentation” and keep US markets competitive as other countries move fast to attract digital-asset firms.

Market response has been quiet so far, with traders focused on the sell-off in major tokens. 

Spot Bitcoin ETFs saw about $818 million in outflows on Jan. 29, adding to roughly $1.8 billion in forced liquidations as Bitcoin dropped below $85,000 and briefly traded near $81,000. 

Large redemptions came from funds run by BlackRock and Fidelity Investments.

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Key Takeaways

• The US Securities and Exchange Commission and the Commodity Futures Trading Commission have formally reshaped Project Crypto into a joint effort to align federal oversight of digital-asset trading.
  
• Project Crypto began in 2025 as an SEC program to update its approach to modern trading systems.
  

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