US SEC Rolls Out ‘Project Crypto’ to Rewrite Rules for Digital Assets
In a landmark shift for U.S. financial regulation, Securities and Exchange Commission Chair Paul Atkins has launched “Project Crypto,” a forward-looking initiative designed to overhaul how digital assets are governed in America. The project follows major policy recommendations released in a recent White House report on digital finance.
Atkins said the initiative aims to modernize the SEC for 21st-century capital markets, streamline regulation for crypto innovators, and ensure the U.S. maintains global leadership in digital finance.
A Response to the White House’s Digital Finance Blueprint
The new initiative was formed directly in response to the Biden-era President’s Working Group report, titled “Strengthening American Leadership in Digital Financial Technology.” The report urged federal agencies to build a coherent market structure for digital assets while eliminating fragmented oversight.
Under Project Crypto, Atkins proposed:
- Unified licensing rules to allow brokerages to offer multiple digital instruments under a single registration;
- Regulatory grace periods for early-stage crypto startups, including ICOs and decentralized software projects, to encourage innovation without immediate legal exposure;
- Legal protections for self-custody, ensuring individuals and institutions retain the right to manage digital assets without custodial intermediaries;
- A clear separation between commodities and securities, aligning crypto assets more accurately with the CFTC and SEC’s respective mandates.
“Many of the Commission’s legacy rules and regulations do not make sense in the twenty-first century — let alone for on-chain markets,” Atkins wrote. “The Commission must revamp its rulebook so that regulatory moats do not hinder progress and competition.”
A Regulatory Reset: Ending ‘Enforcement-First’ Tactics
Atkins’ leadership marks a dramatic reversal of the SEC’s prior posture, which was widely criticized for regulating crypto by enforcement rather than by policy. Since his appointment, the agency has:
- Ended regulation-by-enforcement as a default approach to the crypto sector;
- Approved multiple crypto exchange-traded funds (ETFs);
- Clarified staking income guidance, affirming that rewards earned from proof-of-stake validation do not constitute securities transactions;
- Authorized in-kind redemptions for crypto ETFs, a key functionality for institutional investors managing large-scale inflows and outflows.
These reforms reflect a deeper institutional commitment to integrating crypto into the mainstream financial system, rather than pushing it to the regulatory margins.
Joint Oversight with CFTC and a Focus on Stablecoins
In line with the White House report’s recommendations, joint jurisdiction between the SEC and the Commodity Futures Trading Commission (CFTC) will now define federal oversight of the crypto sector:
- The CFTC will assume primary responsibility over spot crypto markets, affirming its role as the chief regulator for crypto commodities like Bitcoin.
- The SEC will focus on security tokens, tokenized investment contracts, and digital asset platforms that function more like exchanges or broker-dealers.
The report also laid out a framework for stablecoin policy, interagency coordination, and banking integration — areas that will be built out as Project Crypto progresses.
The Path Ahead: Toward American Crypto Leadership
Project Crypto signals more than regulatory reform — it marks a strategic repositioning of the United States in the global digital economy. By creating legal clarity and reducing uncertainty, the initiative is designed to attract builders, protect consumers, and ensure that digital asset innovation remains anchored on American soil.
“Outfitting the SEC for internet capital markets and onchain finance is no longer optional — it’s essential for economic competitiveness,” Atkins said.
As Washington realigns its crypto policies, Project Crypto could become a cornerstone in defining the next era of financial innovation — one that balances open markets, strong protections, and global leadership.
@ Newshounds News™
Source: Cointelegraph
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Senator Lummis Proposes Law Requiring Fannie and Freddie to Count Crypto in Mortgage Risk Evaluations
In a significant step toward integrating digital assets into U.S. housing finance, Senator Cynthia Lummis (R‑Wyo.) has introduced the 21st Century Mortgage Act, which would compel Fannie Mae and Freddie Mac to consider cryptocurrency holdings when evaluating risk in single-family mortgage applications.
The legislation follows recent action by the Federal Housing Finance Agency (FHFA), whose director Bill Pulte ordered that crypto reserves be counted as eligible assets in underwriting models. The new measure would formalize and expand that shift, positioning the U.S. mortgage industry to better reflect a digital-first financial reality.
From Cold Storage to Homeownership: A Modernization of Risk Assessment
Under current practices, government-sponsored enterprises (GSEs) like Fannie and Freddie typically assess loan risk based on traditional assets such as cash, retirement accounts, and securities. Cryptocurrency, despite being a growing source of wealth—especially among younger Americans—has largely been excluded due to volatility concerns and regulatory ambiguity.
The 21st Century Mortgage Act changes that by:
- Mandating recognition of digital assets recorded on cryptographically secure ledgers;
- Barring lenders from requiring borrowers to liquidate crypto holdings into fiat currency simply to qualify for consideration in mortgage risk evaluations;
- Aligning GSE underwriting with financial realities in which digital savings play an increasingly central role.
Senator Lummis emphasized that this measure is a response to declining homeownership rates among younger Americans and the widespread adoption of crypto.
“Rather than punishing innovation, government agencies must evolve to meet the needs of a modern, forward‑thinking generation,” Lummis stated.
Backed by FHFA Policy and Market Momentum
The legislation would codify a recent directive by FHFA Director Bill Pulte, who in June instructed Fannie Mae and Freddie Mac to:
- Treat cryptocurrency reserves as eligible assets in risk assessments for single-family loans;
- Develop processes to recognize those balances without requiring conversion into U.S. dollars;
- Review how broader digital asset holdings—especially Bitcoin—can be safely integrated into mortgage underwriting models.
This marks a break from legacy practices, where underwriters excluded crypto entirely, citing market unpredictability and lack of clear guidance.
Pulte’s move signals a regulatory rethinking of digital asset legitimacy, especially as the FHFA—tasked with overseeing Fannie, Freddie, and the Federal Home Loan Banks—seeks to modernize the housing finance ecosystem.
Policy Clarity Without Crypto Mortgages (Yet)
It’s important to note: the bill does not permit mortgage repayments in cryptocurrency. Instead, it allows verified crypto holdings to be counted in:
- Asset verification, used to determine borrower capacity;
- Risk modeling, used by GSEs to assess portfolio strength and loan eligibility.
By expanding the asset base eligible for consideration, the law aims to give crypto-native borrowers access to the same mortgage pathways as traditional savers.
A Generational Shift in Homeownership Strategy
Data from the U.S. Census Bureau shows homeownership rates for Americans under 35 at just 36.6%, even as 21% of U.S. adults report holding crypto—with two-thirds under age 45. These figures highlight a generational mismatch between how financial stability is measured and how wealth is now built.
The bill also arrives as part of a broader shift in regulatory tone under the current administration, which has begun addressing crypto policy more comprehensively—particularly in areas of banking, taxation, stablecoins, and capital markets.
Bridging Digital Assets and Traditional Finance
Senator Lummis, a long-time crypto policy advocate, is leveraging bipartisan concern over declining homeownership and outdated underwriting models to push for practical integration of digital finance into federal housing policy.
If passed, the 21st Century Mortgage Act could become a template for future crypto-inclusive reforms, enabling financial institutions to recognize digital savings without compromising risk standards or requiring unnecessary fiat conversions.
As Lummis frames it: modernization isn’t about abandoning oversight — it’s about updating the rules to reflect financial reality.
@ Newshounds News™
Source: CryptoSlate
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Coinbase Launches XRP Perpetual Futures to Expand Institutional Access
Coinbase is set to launch XRP U.S. Perpetual-Style Nano Futures on August 18, marking a significant expansion in its derivatives lineup and providing institutional investors with a capital-efficient, margin-enabled vehicle to gain exposure to one of crypto’s most liquid assets.
Announced via Coinbase Institutional on July 29, this new offering represents a regulated and long-duration alternative to traditional spot trading, enhancing access to XRP through Coinbase Derivatives LLC, a CFTC-registered designated contract market.
XRP Futures Designed for Institutional Utility and Spot-Price Alignment
The nano XRP perpetual-style contract—listed under the symbol XPP—is structured to mirror the XRP spot price through a dynamic funding rate mechanism, which credits or debits open positions based on market movements.
Each contract will represent 500 XRP, offering a 5-year, cash-settled duration, rebalancing weekly via clearing adjustments. Trading will occur from Friday evening through the following Friday afternoon, with a short weekly pause, and contracts will auto-roll through December 2030.
“The Coinbase Derivatives, LLC nano XRP Perp Style Futures Contract is a 5-year cash-settled futures contract that tracks closely to spot price by using a funding rate to debit/credit open positions via a clearing cash adjustment,” the company’s product documentation explains.
This format enables institutions to hedge XRP exposure, speculate on future price trends, or leverage margin trading strategies, all within a regulated U.S. derivatives framework.
Building on a Regulated Futures Framework
Coinbase’s August launch builds on groundwork laid earlier this year:
- In April 2025, Coinbase filed with the Commodity Futures Trading Commission (CFTC) to self-certify XRP futures.
- That same month, the exchange launched two monthly XRP futures products: a nano contract (500 XRP) and a larger XRL contract (10,000 XRP)—both cash-settled and monthly expiring.
The upcoming perpetual-style XRP futures mark a clear evolution from those products by eliminating expiration and extending visibility for long-term strategies.
This move aligns with Coinbase’s broader initiative to reshape U.S. market access for digital assets through regulated derivatives offerings that mirror traditional financial instruments but leverage the liquidity and innovation of crypto markets.
Why It Matters: Institutional Crypto Derivatives Come of Age
As the digital asset sector matures, demand is increasing for compliant, capital-efficient tools that offer reliable price tracking, risk management, and regulatory clarity. Coinbase’s latest XRP futures offering addresses this need, particularly at a time when:
- Institutional participation in crypto is rising;
- CFTC-registered exchanges are gaining favor over offshore alternatives;
- And digital asset derivatives are becoming central to portfolio construction and hedging strategies.
This development further legitimizes XRP as a viable component of institutional portfolios, especially in light of growing clarity around its legal and regulatory standing in the U.S.
Outlook: Coinbase Pushes for Derivatives Dominance
With Coinbase Derivatives LLC at the helm and XRP nano perpetuals leading the charge, the exchange is cementing itself as a frontrunner in regulated crypto futures, aiming to provide U.S. investors with alternatives that are:
- Lower in capital requirements than full spot holdings;
- More flexible in exposure timeframes;
- And compliant with evolving CFTC oversight.
This launch not only expands investor access to XRP but also signals Coinbase’s broader intent to bridge the gap between traditional finance and digital assets—one futures contract at a time.
@ Newshounds News™
Source: Bitcoin.com
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Visa Expands Stablecoin Settlement Platform With PYUSD, USDG, EURC and Adds Stellar, Avalanche Support
Visa has announced the addition of three new stablecoins and two additional blockchains to its digital asset settlement platform, further reinforcing its commitment to a multi-chain, multi-currency future in global payments.
The move is part of a strategic collaboration with Paxos, the blockchain infrastructure provider behind PayPal’s digital asset products, and comes amid growing institutional demand for regulated stablecoins following the recent passage of the GENIUS Act in the United States.
Visa Adds PYUSD, USDG, and EURC to Stablecoin Settlement Suite
The newly supported stablecoins include:
- PayPal USD (PYUSD) – a U.S. dollar-backed stablecoin issued by Paxos.
- Global USD (USDG) – another USD-backed token structured for institutional settlement.
- EURC – a euro-backed stablecoin issued by Circle.
These stablecoins join USDC, which Visa first integrated in 2021. With the latest additions, Visa now supports four fiat-backed stablecoins and allows settlement across 25+ fiat currencies, enabling partners to conduct multi-currency settlements with greater capital efficiency.
Stellar and Avalanche Join Ethereum and Solana on Visa’s Blockchain Roster
In addition to expanding its stablecoin lineup, Visa has also extended blockchain compatibility to include:
- Stellar (XLM)
- Avalanche (AVAX)
These new networks join Ethereum and Solana, which were previously integrated into Visa’s pilot and settlement infrastructure. This multi-chain expansion is part of Visa’s effort to build a scalable, flexible architecture for programmable money.
“When stablecoins are scalable, interoperable, and trusted, they can fundamentally transform how money moves globally,” said Rubail Birwadker, Visa’s Global Head of Growth Products and Partnerships.
Visa’s updated platform positions it as a neutral settlement layer for Web3 applications and enterprise payment solutions alike, offering compatibility across token types and blockchain ecosystems.
GENIUS Act Fuels Stablecoin Momentum Across Finance Sector
Visa’s latest move follows a surge of interest in stablecoins across the financial sector, spurred by the GENIUS Act, now U.S. law, which formally regulates fiat-backed digital currencies under federal banking oversight.
Since the law’s passage:
- Citibank, Bank of America, and other major institutions have signaled plans to issue or custody stablecoins.
- Global transaction volumes involving stablecoins have continued to rise.
- Analysts project the stablecoin market will expand from $275 billion to $2 trillion by 2030.
Visa’s stablecoin expansion comes at a pivotal moment for the industry, as tokenized money begins to intersect with traditional finance on a global scale.
Strategic Positioning for the Future of Money
Visa’s continued investment in blockchain infrastructure and regulated stablecoins reflects a deliberate effort to future-proof its payment network, offering partners a toolkit that spans currencies, jurisdictions, and blockchain rails.
With support for:
- 4 stablecoins (USDC, PYUSD, USDG, EURC)
- 4 blockchains (Ethereum, Solana, Stellar, Avalanche)
…Visa is poised to serve as a critical bridge between the traditional financial system and the decentralized internet of value.
@ Newshounds News™
Source: TheCryptoBasic
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