SEC’s ‘Project Crypto’ Could Redefine Wall Street: Bernstein

The U.S. Securities and Exchange Commission’s newly launched "Project Crypto" could mark a turning point in financial regulation, according to brokerage firm Bernstein. Under SEC Chair Paul Atkins, the initiative aims to modernize outdated securities laws for the blockchain era—a move Bernstein calls the boldest crypto vision ever proposed by a U.S. regulator.

Unveiled in a July 31 keynote titled "American Leadership in the Digital Finance Revolution," Project Crypto draws parallels to historic market milestones like the founding of the NYSE in 1792. The SEC plans to introduce clear classifications for digital assets, moving beyond the blanket application of the Howey Test. Major Wall Street and Silicon Valley players are already eyeing Atkins' push for U.S.-regulated tokenized stocks and bonds.

The proposal could simplify licensing by allowing broker-dealers to offer both crypto and traditional financial services under one framework. This comes as the SEC seeks to reverse the exodus of crypto firms offshore amid years of regulatory uncertainty.