Paul Atkin’s Crypto Policy Slips Under Radar as Markets Slide, According to Bernstein

SEC’s ‘Project Crypto’ Could Redefine U.S. Crypto Regulation, Says Bernstein

As crypto markets slumped Friday, a potentially transformative shift in U.S. regulation quietly emerged, Wall Street broker Bernstein noted in a Monday research report.

In a speech described by analysts as “the boldest and most transformative crypto vision ever laid out by a sitting SEC chair,” U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins unveiled Project Crypto—a sweeping initiative designed to bring securities laws into the digital era.

Regulatory Reset for the Crypto Era

At the heart of the plan is a push to modernize outdated securities frameworks and reshore crypto innovation after years of regulatory ambiguity drove businesses abroad. Bernstein said the SEC intends to use its interpretative and exemptive authority to reduce friction and ensure rules don’t stifle technological progress or entrepreneurship.

A Break From the Howey Test

In a notable policy reversal, Atkins stated that most crypto assets should not be classified as securities, pointing to regulatory confusion surrounding the Howey Test as a barrier to capital formation.

He pledged to introduce new classification standards that distinguish between commodities, stablecoins, collectibles, and governance-oriented tokens, helping to remove legal uncertainty that has plagued the sector.

Foundation for a Tokenized U.S. Market

According to Bernstein, Project Crypto also sets the stage for onshore tokenization of traditional financial assets like stocks and bonds. The SEC reportedly aims to build the world’s largest tokenized securities market, with major Wall Street institutions and tech players already engaged.

Overshadowed by Market Turmoil

While the broader crypto market faced sharp losses—overshadowing regulatory developments—Bernstein sees Project Crypto as a historic policy inflection point that could reposition the U.S. as the global leader in digital asset innovation.

“This isn’t just regulatory reform—it’s a blueprint for U.S. dominance in the next phase of financial infrastructure,” the report concluded.