#ProjectCrypto "Project Crypto" is an initiative launched by the U.S. Securities and Exchange Commission (SEC) aimed at modernizing securities rules and regulations to enable America's financial markets to transition to blockchain-based, on-chain systems. The project seeks to make the United States the "crypto capital of the world" by fostering innovation, providing regulatory clarity, and promoting American leadership in the digital finance revolution.

The key objectives of Project Crypto include¹:

- *Developing Clear Guidelines*: Establishing bright-line rules for determining whether a crypto asset is a security or subject to an investment contract, allowing market participants to categorize crypto assets into digital collectibles, digital commodities, or stablecoins.

- *Regulatory Framework for Crypto Asset Securities*: Creating a framework that allows crypto asset securities to flourish within American markets, including purpose-fit disclosures, exemptions, and safe harbors for transactions like initial coin offerings and network rewards.

- *Enhancing Freedom*: Ensuring market participants have maximum choice when deciding where to custody and trade crypto assets, including self-custody options and modernizing custody requirements for registered intermediaries.

- *Facilitating Super-Apps*: Allowing market participants to innovate with "super-apps" that offer a broad range of products and services under one roof with a single license, promoting horizontal integration of product offerings.

- *Unleashing On-Chain Software Systems*: Updating antiquated agency rules and regulations to unleash the potential of on-chain software systems in securities markets, creating space for both intermediated and disintermediated activity.

- *Fostering Innovation*: Encouraging innovation and entrepreneurialism by providing an innovation exemption that allows registrants and non-registrants to quickly go to market with new business models and services without being hindered by incompatible regulatory requirements.