SEC Chair and CFTC Chair Launch Project Crypto to Unify Cryptocurrency Regulation

According to a disclosure on the SEC's official website, SEC Chair Paul S. Atkins and CFTC Chair Mike Selig formally launched the joint initiative "Project Crypto" at the CFTC headquarters on January 29. This initiative aims to coordinate the regulatory standards of the two agencies for the cryptocurrency market, in response to the bipartisan market structure legislation currently advancing in Congress. Paul S. Atkins stated that the current regulatory model struggles to adapt to the current state of technological convergence, and fragmented regulation has become a source of confusion for investors rather than protection. Project Crypto will seek to establish a unified framework in areas such as trading, clearing, custody, and risk management, and will follow the principle of "minimum effective dose" for appropriate regulation. Furthermore, over the past year, SEC Staff have provided guidance on matters including Memecoins, stablecoins, mining, staking, and broker-dealer financial responsibility, and clarified that registered advisers and regulated funds may hold crypto assets with specific state-chartered financial institutions. This initiative marks a shift in regulatory focus from enforcement-driven actions towards rule clarity, aiming to reduce compliance costs through inter-agency collaboration.