The U.S. Securities and Exchange Commission (SEC) has announced a shift in its enforcement-focused cryptocurrency regulation approach, which it has maintained for the past decade. "Project Crypto," unveiled by the SEC, is not simply a policy proposal; it signals a fundamental restructuring of American regulatory philosophy. This shift is expected to have a significant impact not only within the United States but also on global regulatory trends.
On July 31, 2024, SEC Chairman Paul Atkins formalized a new regulatory approach, acknowledging that the United States is no longer a leader in financial innovation. He declared, "We will lead," and announced that the SEC would directly design the cryptocurrency market structure. Unveiled under the name "Project Crypto," this strategy was driven by an internal awakening to the reality that domestic companies, capital, and developers were fleeing to countries like Europe and Singapore.
One of the key changes is the classification of cryptocurrencies into four categories: digital goods, digital collectibles, digital instruments, and tokenized securities. Three of these categories are classified as non-securities, and the rule that once an investment contract ceases to be a security is clarified. This is considered a historic move, officially reversing the SEC's previous position that considered cryptocurrencies "perpetual securities."
The SEC also announced plans to multi-layer its regulatory framework to allow for shifts in oversight as the nature of assets evolves. For example, the CFTC will redesign its functional oversight structure to ensure that digital assets transition from securities to commodities. It was also noted that these changes are not temporary adjustments but rather are leading to legislative demands for institutionalization.
This SEC declaration is interpreted as reducing regulatory uncertainty in the digital asset market and could have a positive impact on corporate activity and capital inflows in the US in the medium to long term. In particular, by legally recognizing the termination of investment contracts and clarifying that tokens are not securities when certain requirements are met, it is expected to contribute to mitigating regulatory risks in the industry.
This asset classification approach is expected to enhance transparency and provide market participants with clear legal standards, creating a more liberal operating environment for projects linked to the real economy, NFTs, and the issuance of utility tokens. Furthermore, the structure that flexibly coordinates supervisory authority between agencies will reduce regulatory gaps while ensuring policy flexibility that does not hinder technological innovation.
TokenPost interprets the SEC's recent shift in policy as a structural shift in the regulatory paradigm, rather than a short-term easing measure. In particular, the principle that "investment contracts are terminated" is likely to become a global regulatory standard in the future, potentially leading to changes in each country's legal framework.
While Project Crypto represents a movement to institutionally accommodate industrial and technological development, Korea remains stuck in a regulatory framework without functional distinctions. The initial token issuance method remains entrenched as a permanent regulatory standard, and the lack of coordination between supervisory agencies leads to recurring debates over responsibility. Legislation, too, is limited, often seen as merely a supplementary tool for strengthening regulations.
The implications of the SEC's changes are clear. Now that the United States has solidified its position as a global regulatory hub, Korea must also move beyond the "review" and "TF formation" phases and embrace implementation-focused structural reform.
The SEC has begun redefining the digital asset market through regulatory self-reflection and structural reform. An approach based on the function and substance of assets is likely to spread internationally, and if Korea falls behind, it could accelerate the exodus of industrial competitiveness, talent, and capital. What Korea needs now is not more review, but a fundamental "direction decision."
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