Investor Support for Regulatory Reform

British-American venture capitalist Tim Draper has expressed enthusiastic support for the U.S. Securities and Exchange Commission’s newly launched “Project Crypto”, calling it a major step toward a fully Bitcoin-powered economy. In a post on X (formerly Twitter) dated 31 July, Draper praised the SEC’s vision following remarks from SEC Commissioner Paul S. Atkins in Washington, D.C., where the initiative was formally unveiled.

Draper, a long-time proponent of decentralised finance, described the initiative as a breakthrough moment for the financial system. “Project Crypto looks amazing!” he wrote. “My dream of raising a fund entirely in Bitcoin, investing solely in Bitcoin, and allowing startups to pay all employees and vendors in Bitcoin—with all accounting managed through blockchain smart contracts—is finally within reach.”

A Software-Driven Financial Future

Draper went on to highlight the broader implications of the project, envisioning a seamless financial ecosystem where everything from bookkeeping and auditing to tax processing and ownership transfer occurs through automated, software-driven systems. “Imagine an entire ecosystem with accounting, audit, taxes, bookkeeping, and property transfer—completely handled in software!” he said.

His comments reflect a growing sentiment among institutional investors who view blockchain technology not just as a tool for innovation, but as the foundation for a more efficient and decentralised financial infrastructure. Draper underscored his support for tokenised ownership, blockchain-based accounting, and smart contract-powered audits, all of which align with the SEC’s stated goals for modernising the capital markets.

SEC Launches ‘Project Crypto’ to Move Capital Markets On-Chain

In what has been described as the boldest pro-crypto move in its history, the SEC has introduced “Project Crypto” — a sweeping initiative designed to overhaul U.S. securities regulations to accommodate blockchain-based financial systems. The announcement comes on the heels of the recently passed GENIUS Act and a major policy report from the President’s Working Group on Financial Markets.

What Is Project Crypto?

According to Commissioner Atkins, “Project Crypto” is a commission-wide effort to:

• Enable on-chain capital markets using blockchain infrastructure

• Provide legal clarity for crypto issuance, trading, and custody

• Prevent innovation from fleeing overseas due to regulatory uncertainty

• Replace outdated 20th-century rules with blockchain-native policies

To achieve this, the SEC will issue temporary guidance, exemptions, and “safe zones” that allow Web3 innovation to progress while new rules are being developed. This regulatory breathing room is intended to encourage developers and businesses to continue building without fear of legal retaliation.

Tokenised Securities and Blockchain Capital Raising

A core aspect of the initiative is the authorisation of tokenised securities—including shares, bonds, and partnership interests—to be issued and traded on public blockchains. This modernised framework will enable companies to raise capital directly through blockchain-based offerings, including Initial Coin Offerings (ICOs), token airdrops, and network-based rewards—without resorting to offshore entities or complex legal workarounds.

Custody rules are also set to be updated, allowing for blockchain-based settlement and storage of digital assets. This change will remove significant regulatory obstacles and support the use of decentralised infrastructure and smart contracts in financial operations.

New Regulatory Clarity for Crypto Projects

Most notably, the SEC plans to replace vague enforcement patterns with explicit regulatory guidance and written rules. This marks a departure from the controversial reliance on the Howey Test to determine whether crypto assets qualify as securities. Instead, developers will benefit from clearly defined criteria, allowing them to build confidently within a transparent regulatory framework.

In essence, Project Crypto represents a shift from punitive ambiguity to proactive support. With the SEC’s roadmap, the long-standing vision of a decentralised, Bitcoin-driven economy—championed by figures like Tim Draper—appears to be drawing closer to becoming a tangible reality.