SEC Rolls Out 'Project Crypto' To Update US Regulation Of Digital Assets

SEC Chairman Paul Atkins unveiled "Project Crypto," an ambitious initiative to bring US securities laws up to date so that they can more effectively embrace cryptocurrencies and other digital assets. According to Cointelegraph, the project is designed to simplify how crypto assets are defined, regulated, and incorporated into the financial ecosystem, as a move towards an innovation-friendly direction.

Atkins explained that the majority of crypto assets are not securities, removing decades of regulatory uncertainty in the industry. "Project Crypto" suggests new rulemaking procedures to establish how tokens are issued, traded, and stored, departing from the enforcement-first approach seen during previous SEC leadership.

The initiative provides new channels for decentralised finance (DeFi) platforms, staking models, and token launches to conduct business under explicit exemptions or safe harbour provisions. It also facilitates the development of "super-apps" that provide a combination of trading, lending, and staking services through a single license.

A specialised team led by Commissioner Hester Peirce will oversee the drafting of tailored regulations. Their responsibilities include developing clearer standards for custody of digital assets, refining disclosure requirements, enabling tokenised securities, and potentially offering relief to previously penalised token offerings.

SEC's new path promises to introduce regulatory clarity and foster domestic innovation within the crypto space. In doing this, it seeks to re-entice global digital asset participants into the US and lay the groundwork for future financial technologies. Industry experts have received the move positively, interpreting it as a major shift towards making the US a more competitive centre for blockchain finance.

Jito Labs And VanEck Call On SEC To Sanction Liquid Staking In Solana ETPs

Jito Labs, VanEck, Bitwise, Multicoin Capital, and other industry leaders have called on the US Securities and Exchange Commission to permit the inclusion of liquid staking tokens (LSTs) in future Solana-based exchange-traded products. In a joint letter filed on July 31, they maintained that the inclusion of LSTs would enhance capital efficiency, lower tracking error, and provide greater flexibility for asset managers.

Liquid staking enables investors to stake their SOL but remain free to sell. When individuals stake tokens using smart contracts, they are issued a derivative token like JitoSOL, which can be used to trade or for decentralised finance purposes. The derivative tokens still accrue staking rewards, even while trading in the market.

The letter pointed out that permitting LSTs in ETPs would make it easier for issuers to manage in-kind creation and redemption more effectively. It would also ensure that liquidity is preserved and operational expenses related to staking reward management in large portfolios are minimised.

The proposal also recognised the risks involved. These are smart contract risk, token depegging, and validator slashing, each of which must be weighed before the regulatory approval can be issued.

Nine Solana ETP applications are pending SEC approval. VanEck recently resubmitted its application for a Solana spot ETF that could potentially feature staking elements, indicating faith in the changing regulatory landscape.

Crypto Hacks Exceed $142 Million In July, CoinDCX Experiences Largest Loss

The crypto industry saw more than $142 million lost as a result of hacks and exploits in 17 attacks in July 2025. This was up 27 percent compared to June's losses totaling $111 million. The biggest breach was that of Indian crypto exchange CoinDCX, which lost $44 million as a result of what the firm explained as a complex server-side attack. A CoinDCX staff member has since been detained for the breach.

The second largest hack was on GMX, a decentralised exchange, with $40 million lost. The money was however refunded. BigONE was hit by another attack on July 16, resulting in a $27 million loss from its hot wallet system. WOO X was also hacked on July 24 via a phishing-based social engineering attack, with a $14 million loss. The attacker used a team member's device to gain access to the development environment and perform malicious transactions for two hours.

Experts stated to Cointelegraph that attackers are targeting off-chain infrastructure, such as backend infrastructure, instead of only smart contracts. The trend identifies the increasing level of maturity among crypto cybercriminals. Impacted platforms used treasury reserves to recover customer balances, but the attacks exposed concerns regarding centralised exchange security and internal procedures.