The U.S. Securities and Exchange Commission’s Division of Corporation Finance is working on a new set of rules for digital assets under an initiative called “Project Crypto.” The effort is being led by Director James Moloney and aims to bring clearer guidance to the fast-growing crypto market.
Announced on February 13, 2026, the proposal marks a shift away from the SEC’s earlier enforcement-focused approach. Instead of relying mainly on lawsuits and case-by-case decisions, the agency plans to introduce clearer, structured rules for how different types of crypto assets should be treated.
The initiative is also part of a wider push to align the SEC’s role with the Commodity Futures Trading Commission, as both regulators seek to clarify who oversees which parts of the expanding tokenized asset sector.
Four Types of Digital Assets
Under Project Crypto, regulators are considering a system that divides digital assets into four main groups:
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Digital Commodities: Tokens that do not promise profits based on a company’s efforts and may fall under CFTC oversight.
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Digital Collectibles: Unique tokens, such as certain NFTs, that are not designed as investment products.
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Digital Tools: Utility tokens used to access or operate within decentralized platforms.
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Tokenized Securities: Traditional financial assets issued on blockchain networks, which would remain under SEC supervision.
The goal is to set clear definitions that replace the uncertainty created by years of legal battles and shifting interpretations.
New Path for Tokens to Lose “Security” Status
The SEC is preparing two key proposals as part of the framework. The first is new guidance explaining how to determine whether a crypto asset qualifies as an investment contract. The second is a possible “decentralization exit” rule that would allow certain tokens to move out of securities status once their networks become sufficiently independent and no longer rely on a central issuer.
For tokens that continue to be treated as securities, regulators are considering simpler compliance rules covering issuance and secondary trading.
Broader Changes to Corporate Reporting
Alongside crypto reforms, Moloney also outlined potential updates to corporate disclosure rules. Companies could be allowed to report financial results twice a year instead of quarterly, reflecting priorities set by SEC Chairman Paul Atkins.
Starting March 18, 2026, directors and executives of Foreign Private Issuers will also need to report stock trades under a new self-executing requirement. In addition, the SEC is exploring an “innovation exemption,” or regulatory sandbox, that would let firms test new financial products under supervision without facing immediate enforcement action.
A Shift in Regulatory Approach
Project Crypto signals a broader change in how U.S. regulators plan to oversee digital assets. Rather than reacting through enforcement actions, the SEC is moving toward clearer classifications and defined rules, developed in coordination with the CFTC. With the tokenized asset market valued at roughly $2 trillion, the initiative could reduce uncertainty for companies and investors if it moves forward into formal regulation.
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