During congressional hearings, SEC Chair Paul Atkins emphasized that while "Project Crypto" addresses immediate rulemaking, federal legislation is essential to provide a permanent and adaptable legal foundation for the digital asset market.
SEC Chair Paul Atkins testified before Congress, stating that the federal crypto regulatory framework is "severely lagging" and endorsing the CLARITY Act. While launching "Project Crypto" with the CFTC to improve token classification, Atkins emphasized at a Senate hearing that congressional legislation is vital for a permanent legal foundation, as agency rules are vulnerable to administrative shifts. The SEC also proposed easing IPO rules and cutting regulatory costs.