Core Viewpoint - The SEC's "Project Crypto" initiative aims to modernize regulations for the cryptocurrency industry, moving away from the previous administration's strict enforcement approach and fostering innovation in the sector [1][13]. Group 1: SEC's New Approach - Paul Atkins announced "Project Crypto" as a comprehensive regulatory reform for the cryptocurrency industry, aiming to create clear and targeted rules for various aspects of crypto assets [1]. - The initiative marks a significant shift from the previous SEC leadership under Gary Gensler, who adopted a stringent enforcement strategy against crypto firms [2][3]. - Atkins emphasized that most crypto assets are not securities, contradicting Gensler's stance and signaling a new direction for the SEC's relationship with the crypto industry [1][3]. Group 2: Key Components of "Project Crypto" - The initiative includes five main points: 1. Establishing a regulatory framework for crypto asset issuance in the U.S. to clarify which assets fall under securities law [6]. 2. Ensuring maximum freedom for market participants in choosing custodial and trading platforms, including the use of self-custody wallets [8]. 3. Promoting "super apps" that allow diverse services under a single license, facilitating innovation without excessive regulatory burdens [9]. 4. Updating outdated regulations to support both centralized and decentralized software systems in the financial market [11]. 5. Introducing an "innovation exemption mechanism" to encourage new business models and services that may not fully align with existing rules [12]. Group 3: Comparison with Hong Kong's Regulations - On the same day as the announcement of "Project Crypto," Hong Kong implemented its "Stablecoin Regulation," which has stricter KYC requirements and licensing for stablecoin issuers compared to the U.S. approach [2][14]. - The Hong Kong regulations require all stablecoin holders to undergo identity verification, which contrasts with the more flexible regulatory environment proposed by the SEC [15][20]. - The SEC's initiative aims to create a more favorable environment for innovation in the U.S., while Hong Kong's regulations may limit the potential of DeFi and decentralized systems [20].