<div id="readability-page-1"><p>Paul Atkins, chairman of the Securities and Exchange Commission (SEC), has unveiled a host of new initiatives under the umbrella of Project Crypto. He says he wants to modernize the SEC's rules and regulations to encourage innovation. One part of his vision is the development of so-called super-apps that let investors access a wide array of assets and financial services in one place -- or even many services beyond finance.</p> <p>Atkins thinks the previous SEC leadership was wrong to argue that almost all cryptocurrencies are securities. Under Project Crypto, he says, the SEC will issue clear guidelines on how to categorize crypto assets. That includes clarity on what is -- and is not -- a security. Moreover, he wants to find ways to bring tokenized securities to the U.S. This would mean U.S. investors could access tokenized public (and possibly private) equity.</p> <p>Tokenized assets would form part, but not all, of the super-app offer. Read on for more about what super-apps are and what investors need to know about them.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjgxMDIvbmV0d29yay1kYXRhLWNvbm5lY3Rpb24tc2F0ZWxsaXRlLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjgxMDIvbmV0d29yay1kYXRhLWNvbm5lY3Rpb24tc2F0ZWxsaXRlLmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <h2>What are super-apps?</h2> <p>Super-apps would serve as a one-stop shop where investors could access various digital trading and asset management services. For example, you might log on to buy or sell cryptocurrencies alongside traditional securities within the same account. You might also access staking and crypto lending products.</p> <p>If this comes to fruition, a brokerage account could give customers more access to digital assets and banking services. Atkins says there's nothing in current securities laws to stop SEC-registered trading platforms from listing non-securities. Another possibility could be to access traditional investments from a crypto platform. </p> <p>Super-apps have taken off in parts of Asia. For example, China's WeChat is much more than a messenger app. It works as a photo editor, translator, payment gateway, taxi booking service, food delivery app, and more. However, attempts to replicate the service in North America or Europe have not been successful. Some of that is regulatory, but it is also cultural -- consumers may not want to do everything in one place. Plus, competition from existing players may make it hard for one app to rule them all.</p> <h2>Who benefits from super-app growth?</h2> <p>If the super-app market can establish itself, several existing crypto exchanges and brokerages could be well positioned to capitalize on shifts in consumer behavior. It may also serve to open decentralized finance (DeFi) applications to more investors.</p> <p>Here are some of the biggest potential gainers:</p> <h3>Integrated crypto platforms and brokerages</h3> <p>Major cryptocurrency platforms like <strong>Coinbase</strong> <span>(COIN<span> -0.11%</span>)</span> and brokerages like <strong>Robinhood</strong> <span>(HOOD<span> 3.09%</span>)</span> are already positioning themselves as super-app market leaders. If there is customer appetite for this type of financial one-stop shop, which is far from certain, they may be able to secure a first-mover advantage.</p> <p>Robinhood's digital wallet already sets it apart from other brokerages that sell crypto. It is now developing its own blockchain and has added a host of products recently. This year, it added a robo-advisor investment platform and crypto staking to its product lineup for U.S. investors. It plans to make banking services available later this year. In July, the pioneer of low-cost investing launched tokenized stocks in Europe, meaning it will be ready to introduce them in the U.S. if and when the SEC gives the green light. </p> <p>Coinbase's Base App is already stepping into super-app territory. The replacement to the Coinbase Wallet is a place where users can trade crypto, make payments, and interact with other users on a social media feed. It's a user-friendly self-custody crypto wallet that connects to DeFi applications, making them significantly more accessible to everyday users. Coinbase Chief Executive Officer Brian Armstrong told CNBC that the company plans to become an &#34;everything exchange&#34; and plans to roll out tokenized real-world assets in the coming months.</p>  <h3>Decentralized finance (DeFi)</h3> <p>At the moment, many DeFi applications are difficult to manage for people who aren't used to crypto. It can involve setting up a crypto wallet, understanding gas (user) fees, and navigating some fairly inaccessible protocols. Once you've set them up, many take active management -- you often can't just leave funds in a yield-earning DeFi account.</p> <p>Super-apps could be a missing part of this puzzle, as they would make DeFi more accessible and easier to use. If you're looking for cryptocurrencies that may benefit from super-app growth, consider some of the more established DeFi players. These include decentralized lenders, such as <strong>Aave</strong> <span>(AAVE<span> 0.59%</span>)</span> and decentralized exchanges, and <strong>Uniswap</strong> <span>(UNI<span> 3.37%</span>)</span>.</p> <p>It's also worth noting that Atkins' announcement comes as lawmakers consider legislation that would clarify what constitutes a security. The House passed the Clarity Act in July, but it still needs to go through the Senate. It isn't clear how any legislative changes would affect the SEC's plans.</p> <h2>The not-so-super side of super apps</h2> <p>The changing digital asset landscape in the U.S. could bring a number of opportunities for investors. For example, recent guidance from the SEC makes it easier for U.S. investors to earn staking rewards, which can be a powerful benefit for long-term investors.</p> <p>But more relaxed regulations might open the way for increased fraud and theft, and they might reduce protections for consumers in the event of platform failure. Super-apps could also run into problems with data-protection laws.</p> <p>It will be important to pay attention to what rules new platforms -- including super-apps -- have to follow in terms of custody and fraud protection. If the SEC green-lights tokenized securities that can be traded on platforms that aren't registered as brokers, pay attention to what assets you actually own and how they are supported or issued.</p> <h2>Super-apps: opportunities and risks</h2> <p>The crypto market continues to offer the potential for high rewards to investors who are comfortable with high risks. However, there may not be an appetite in the U.S. and Europe for integrated financial service platforms, even if regulators encourage this type of growth. If they do take off, the onus will be on investors to do considerable due diligence on both the platform they use and the assets they buy.</p>                                                                            </div>

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<p>Paul Atkins, chairman of the SEC, has introduced initiatives under Project Crypto to modernize regulations and promote innovation, including the development of super-apps for investors. These apps would allow access to various financial services and assets in one platform. Atkins aims to clarify crypto asset categorization and facilitate tokenized securities in the U.S. Major players like Coinbase and Robinhood are positioning themselves as leaders in this market. The growth of super-apps could enhance accessibility to decentralized finance (DeFi) applications, making them easier for everyday users.</p>

- Paul Atkins, chairman of the SEC, has introduced Project Crypto to modernize regulations and promote innovation in the cryptocurrency space.  
- The initiative includes the development of super-apps that would allow investors to access various financial services and assets in one platform, potentially increasing accessibility to tokenized securities.  
- While super-apps could benefit existing crypto exchanges and democratize decentralized finance, there are concerns about regulatory challenges, consumer protection, and the potential for increased fraud.  

The SEC Wants to Supercharge Super-Apps. Here's What Investors Need to Know