US Regulators Move Closer to Europe’s MiCA With Project Crypto
US regulators have been stuck for years trying to figure out how to deal with digital assets. Startups have had uncertainty regarding whether tokens are securities, and exchanges have contended with competing federal bureaucracies. Lack of clarity has made slow investment and has pushed some companies to seek alternatives. Perhaps that is beginning to change. The US Securities and Exchange Commission has introduced Project Crypto as a way to create more information and help provide guidance on digital assets.
This comes after months of debate in Washington on cryptocurrency. It is also the first to attempt to establish a framework for tokens, stablecoins, and exchanges more generally. It resembles Europe’s Markets in Crypto-Assets Regulation or MiCA, which is already determining rules for the EU.
This matters for platforms that deal with futures and prediction markets. Services like Coin Futures show the kind of crypto environments regulators are watching closely. These platforms incorporate real-time volatility, risk management controls such as stop-loss tools, and clear fee structures; precisely what regulators have indicated they would like to see more of in the overall marketplace. Project Crypto’s emphasis on consumer protection in addition to the mechanics of trading suggests an effort to develop a nuanced form of innovation.
MiCA came into force in late 2024 and was set to transform crypto business operations. It set out a single framework for licensing of crypto-asset service providers, a disclosure requirement, and a requirement for capital reserves. It covers stablecoins, utility tokens, and asset-referenced tokens, so issuers and platforms have to register and be supervised.
The European approach has attracted companies looking for predictability. Instead of facing a patchwork of national regulators, companies can operate across the EU with one license. More protection is afforded to investors, and more oversight of market behavior and consumer protection is afforded to regulators.
Project Crypto aims to do the same for the US. Given the SEC’s determination that the majority of tokens don’t meet the classic definition of what a security is, there is at least a possibility of having a different set of rules apply in the context of digital assets. They are mulling a single license for combined trading, lending, and staking platforms. It also promises to move away from a model of enforcement actions and towards one of defined obligations.
Although the American plan echoes MiCA, there are important differences. Europe’s rules are already law, with firms applying for licenses and adapting systems to meet new standards. The US regulatory plan remains under development, with details subject to political debate and agency interpretation.
The coverage also differs. MiCA defines separate categories for different token types, while Project Crypto is expected to apply broader categories until more detailed legislation emerges. The US must also resolve overlapping jurisdictions between the SEC, the Commodity Futures Trading Commission, and other agencies. This creates uncertainty for companies waiting to see which regulator will oversee their products.
Crypto companies need to get ready for more oversight. Token issuers will need to disclose and register, and platforms will need to build risk management and reporting systems. For investors, the message is to pay attention to the regulatory status of exchanges and service providers, since compliance will increasingly determine market access. Policymakers have to align new rules with global standards so US businesses can compete internationally without duplicative burdens.
Project Crypto represents a pivotal moment for digital asset policy in the US. By following MiCA-like rules, US regulators are claiming to establish an environment in which investors are safeguarded and businesses are allowed more certainty to operate. Next will come the details and possibly legislation, but the direction is clear. The US is getting closer to a system where innovation and regulation can coexist, and the industry knows what’s expected of it.
