A digital asset
investment fund
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Late last month, the U.S. Securities and Exchange Commission (SEC) under Chairman Paul Atkins announced the launch of "Project Crypto." This initiative aims to modernize the domestic regulatory framework for digital assets, focusing on integrating cryptocurrencies and blockchain technology into U.S. financial markets. The project is designed to provide clarity for businesses and investors navigating an evolving regulatory landscape.
In Paul Atkins speech on July 31, 2025, he emphasized how it was important to foster innovation with clear regulatory guidelines in order to bring the technological innovators back to the United States.
Project Crypto’s primary objective is to establish clear regulations for digital assets. The SEC plans to define when a digital asset asset qualifies as a security, stablecoin, digital commodity, or digital collectible, which will help companies understand how to comply with existing regulations.
Another goal is to facilitate the tokenization of traditional financial instruments like stocks and bonds. The SEC intends to allow these assets to be traded on blockchain platforms, improving access to financial markets and liquidity.
In addition, the SEC is working to update rules around custody and trading to accommodate digital assets. This includes provisions for self-custody, as well as reducing redundant regulations that apply to crypto firms. The SEC will also introduce an "Innovation Exemption" to allow early-stage crypto projects to operate without being fully subject to the existing regulatory framework, promoting experimentation and development in the industry.
In conjunction with Project Crypto, the SEC has released new staff guidance regarding specific crypto activities. For instance, the SEC has clarified that USD-pegged, fully reserved stablecoins used for payments do not qualify as securities. These stablecoins are considered cash equivalents, provided they meet specific criteria.
The news of this new guidance in relation to USD-pegged stablecoins was initially made from Bloomberg Tax as of 4.8.25
Additionally, the SEC addressed liquid staking activities, where users stake digital assets and receive receipt tokens. The SEC's guidance indicates that these activities are not considered securities, as long as they do not involve profits derived from the efforts of others.
The launch of ´´Project Crypto´´ has received a positive response from various stakeholders in the crypto industry. Many see it as an opportunity for more clarity in regulation, which could lead to smoother operations and fewer uncertainties for businesses.
According to Hunter Horsley, CEO of Bitwise, "July 2025 marked the end of the beginning for crypto."
The Commodity Futures Trading Commission (CFTC) has also announced its plans to align with the SEC’s initiative, allowing the trading of spot crypto asset contracts on registered exchanges. This move indicates that both regulatory bodies are working together to create a more comprehensive regulatory framework for the digital asset industry.
The SEC's digital asset reform is expected to have several important effects on the digital asset industry. First, the initiative provides a clearer and more predictable regulatory environment, which could encourage crypto businesses to return to the U.S. from jurisdictions with less defined regulations.
The project will also likely accelerate the integration of blockchain technology into traditional financial systems, enhancing market efficiency and transparency. As a result, decentralized finance systems may see wider adoption.
Furthermore, by providing clear guidelines and exemptions for early-stage projects, ´Project Crypto aims to encourage the development of new decentralized applications and services, driving innovation in digital finance.
The SEC's launch of Project Crypto sets the stage for a new era where digital assets are no longer an afterthought but a core component of the U.S. financial ecosystem. With clearer guidelines and a focus on nurturing innovation, the initiative aims to bridge the gap between traditional finance and blockchain technology. This shift is more than regulatory reform. It is a recognition of the growing potential of digital assets to redefine how we think about value, transactions, and the future of money.
We wrote about the incentive structure of spending digital assets like Bitcoin and made a direct comparison with fiat currencies earlier this year. You can read further here
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