The US SEC launches the "Project Crypto" initiative, ushering in a new era of on-chain finance.

On July 31, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), announced a major initiative called "Project Crypto." This on-chain reform plan led by the SEC aims to reshape the regulatory logic of the U.S. in the era of crypto assets, promote the migration of financial markets to blockchain, and achieve the grand goal of making the U.S. the "world crypto capital."

Unlike the regulatory suppression tone of the past few years, the launch of "Project Crypto" sends a strong signal to the entire industry: the United States has officially entered the on-chain era. This shift marks a departure from regulators simply replacing oversight with enforcement, and instead, they are beginning to actively embrace crypto innovation.

Regulatory Easing, DeFi Protocols Welcome Development Opportunities

After the new chairman Paul Atkins took office, the SEC's regulatory style underwent a fundamental shift. Atkins quickly initiated a roundtable discussion titled "DeFi and the American Spirit" to loosen regulations on decentralized finance.

In Project Crypto, Atkins clearly stated that the original intent of U.S. federal securities laws is to protect investors and maintain market fairness, rather than suppressing technology architectures that do not require intermediaries. He believes that automated market makers (AMM) and other decentralized financial systems can essentially achieve non-intermediated financial market activities and should be granted legitimate status at the institutional level. Clear protections and exemptions should be provided for those developers who "just write code"; while clear and enforceable compliance pathways should be established for intermediaries wishing to provide services based on these protocols.

The shift in this policy approach undoubtedly sends positive signals for the entire DeFi ecosystem. In particular, those protocols that have already formed on-chain network effects and possess highly autonomous designs will gain institutional recognition and development space under the logic of decentralized regulation. Protocol tokens that have long been troubled by the "shadow of securities" are also expected to reshape their valuation logic in the context of policy easing and the return of market participants, once again becoming "mainstream assets" in the eyes of investors.

Super-App will reshape the competitive landscape of trading platforms

Paul Atkins proposed the highly transformative concept of "Super-App" in his speech. Atkins believes that current securities intermediaries face complex compliance structures and redundant licensing barriers when providing traditional securities, crypto assets, and on-chain services, which directly hinders product innovation and the upgrading of user experience. He suggested that future trading platforms should be able to integrate various services under a single license, including non-security crypto assets, security crypto assets, traditional securities, as well as staking, lending, and more. This is not only a compliance innovation that simplifies processes but will also become the core competitiveness of future trading platform-type companies.

The regulatory authorities will promote the implementation of this super application architecture. Atkins has clearly indicated that the SEC will draft a regulatory framework that allows crypto assets to coexist and trade on SEC-registered platforms, regardless of whether they constitute securities. At the same time, the SEC is also evaluating how to leverage existing authority to relax the listing conditions for certain assets on non-registered exchanges. Even derivatives platforms regulated by the CFTC are expected to incorporate some leveraged functions to release greater trading liquidity. The overall direction of regulatory reform is to break the binary boundary between securities and non-securities, allowing platforms to flexibly allocate assets based on the nature of the product and user demands, rather than being constrained by rigid compliance structures.

The direct beneficiaries of this reform are likely to be some large trading platforms. These companies have established diversified trading structures that cover mainstream crypto assets, traditional securities trading, and provide lending and wallet services. Encouraged by Project Crypto, they are expected to become the first platforms to enjoy policy dividends - achieving one-stop services and integrating on-chain products with traditional user groups.

It is foreseeable that once the Super-App architecture is fully released, it will become the core battleground for competition among trading platforms. Whoever can first achieve compliant "multi-asset aggregated trading" will be able to take the lead in the next round of financial infrastructure upgrades. The regulatory stance has become increasingly clear, and platforms are already accelerating their layouts. For users, this means a smoother trading experience, a richer product selection, and a financial world closer to the future.

ERC-3643: The Compliance Bridge for RWA Track

In the tokenization of physical assets ( RWA ), Paul Atkins clearly stated the intention to promote the tokenization of traditional assets and specifically mentioned ERC-3643 as a token standard worth referencing in the regulatory framework. This is also the only token standard publicly mentioned throughout the entire speech, highlighting its significance.

Paul emphasized that when designing the innovative exemption framework, the SEC will prioritize token systems that have "built-in compliance capabilities." The smart contract of ERC-3643 integrates mechanisms such as permission control, identity verification, and transaction restrictions, which can directly meet the current securities regulations regarding KYC, AML, and accredited investors.

The biggest feature of ERC-3643 lies in its design philosophy of "compliance is code." It has a built-in decentralized identity framework called ONCHAINID, requiring all token holders to go through identity verification and meet predetermined rules before being able to hold or transfer tokens. Regardless of which public chain the tokens are deployed on, only users who meet KYC or qualified investor standards can truly own these assets. The compliance determination is completed at the smart contract layer, eliminating the need for centralized audits, manual records, or off-chain protocols.

The main difference from ERC-20 lies in the introduction of the "permissions" dimension. ERC-20 was born in a completely open, permissionless on-chain native environment, where any wallet address can freely receive and transfer tokens, making it a purely "fungible tool." In contrast, ERC-3643 targets high-value, heavily regulated asset classes such as securities, funds, and bonds, emphasizing "who can hold" and "whether it is compliant," making it a "permissioned token standard." In other words, ERC-20 is the free currency of the crypto world, while ERC-3643 is a compliant container for on-chain finance.

Currently, ERC-3643 has been adopted by multiple countries and financial institutions worldwide. From real estate to art collections, from private equity to supply chain invoices, ERC-3643 provides the underlying support for the fragmentation, digitization, and global circulation of various assets. It is currently the only public chain token standard that integrates programmable compliance, on-chain identity verification, cross-border legal compatibility, and the ability to connect with existing financial infrastructure.

As Paul Atkins said, the future securities market must not only operate "on-chain" but also be "compliant on-chain". In this new era, ERC-3643 is expected to become a key bridge connecting the SEC with Ethereum and linking traditional finance with decentralized finance.

The primary market will take off again on-chain.

In the latest released Project Crypto policy, SEC Chairman Paul Atkins clearly stated for the first time: standards for the reclassification of crypto assets will be established to provide clear disclosure regulations, exemption conditions, and safe harbor mechanisms for common on-chain economic activities such as airdrops, ICOs, and Staking. The SEC will no longer default to "issuing tokens is equivalent to issuing securities," but will reasonably classify them into different categories such as digital goods, digital collectibles, stablecoins, or security tokens based on their economic attributes, and provide corresponding legal pathways.

This represents a key turning point: project teams will no longer need to "pretend not to issue tokens," nor will they have to obscure incentive mechanisms through alternative structures like foundations or DAOs. They will no longer need to register projects in tax havens, but rather, teams that truly focus on code and have technology as their core driving force will receive institutional recognition.

With the rapid rise of emerging sectors such as AI, DePIN, and SocialFi, and the surge in market demand for early-stage financing, this regulatory framework based on substantial classification and encouraging innovation is expected to trigger a wave of projects returning to the United States. The U.S. is no longer a market that crypto entrepreneurs avoid, but may become their preferred place for token issuance and fundraising once again.

"Project Crypto" is not a single piece of legislation but a comprehensive set of systemic reforms. It paints a future picture of the integration of decentralized software, token economy, and capital market compliance. Paul Atkins' attitude is also very clear: "Regulation should no longer stifle innovation but make way for it."

For the market, this is a clear signal of a policy shift. From DeFi to RWA, from Super App to token fundraising, who can stand out in this round of policy dividends depends on who can respond first to this American-led "on-chain capital market revolution."