The SEC and CFTC have initiated Project Crypto, a regulatory overhaul aimed at enhancing liquidity and market stability in the crypto sector. Announced on November 12, 2025, at the Federal Reserve Bank of Philadelphia, the project reclassifies Bitcoin (BTC) and Ethereum (ETH) as digital commodities. This classification is part of a broader effort to apply the Howey test to distinguish digital commodities from securities. Led by SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham, the initiative seeks to refine digital asset regulation, thereby attracting more institutional investors. This regulatory clarity is expected to stabilize markets and integrate cryptocurrencies more deeply into traditional financial systems.