The U.S. Securities and Exchange Commission (SEC) has unveiled Project Crypto, a sweeping regulatory initiative, which according to Bernstein, is designed to bring blockchain-based innovation back to U.S. markets.
Announced in a Thursday speech by Commissioner Paul Atkins, the project seeks to modernize capital markets for the digital age—positioning the U.S. as a global leader in crypto finance.
Analysts at Bernstein, led by Gautam Chhugani, describe the project as a direct reversal of previous SEC policies under Gary Gensler. Atkins argued that most crypto assets should not be classified as securities, and that outdated reliance on the Howey Test has hindered capital formation and driven startups offshore.
Key reforms under Project Crypto include
- Clear asset classification into digital commodities, stablecoins, collectibles, and tokenized securities.
- A framework to enable broker-dealers to offer crypto and traditional finance under one license—removing the need for layered state and federal approvals.
- Legal infrastructure for tokenized securities issued under U.S. law, drawing strong interest from Wall Street and Silicon Valley firms.
In a landmark move, the SEC also plans to rewrite legacy rules to bring decentralized finance (DeFi) platforms into the regulatory fold. This includes permission for automated market makers and tokenized lending pools to operate legally within the U.S. financial system
Bernstein sees this as the start of 24/7 trading, instant settlement, and cross-asset collateralization—core innovations that could reshape how capital markets function.
Chhugani noted that Project Crypto “upends the regulatory moat,” giving emerging platforms the same opportunity to innovate as traditional financial giants. As Atkins emphasized in his address, “The winds of change are blowing.” With this bold initiative, the U.S. aims to shift the global crypto narrative—from evasion and fragmentation to leadership and clarity.
