Bernstein Hails SEC’s Crypto Initiative as ‘Revolutionary’

Bernstein analysts have described Project Crypto as “the boldest and most transformative vision for cryptocurrencies ever articulated by the SEC.” This was reported by The Block.

Experts predict that the project will bring innovation back to the country and transform the U.S. into a global hub for blockchain finance.

Project Crypto was introduced by SEC head Paul Atkins. Its aim is to modernize regulation for the digital age. According to Atkins, the American financial system must evolve to avoid falling behind. Analysts believe this approach differs from the stance of the previous head of the agency, Gary Gensler.

Bernstein highlighted key aspects of the initiative. The SEC plans to revise the classification of digital assets, moving away from recognizing most of them as securities. The agency will propose clear rules for categorizing tokens into digital commodities, stablecoins, and collectibles.

The initiative will also simplify licensing. Brokers will be able to offer both cryptocurrency and traditional financial products under a single license, eliminating the need for complex permissions.

The most significant change, according to analysts, is the SEC’s readiness to integrate on-chain infrastructure. The regulator will begin rewriting outdated rules to incorporate DeFi platforms such as automated market makers and lending protocols. Bernstein believes this will pave the way for 24/7 markets and instant settlements.

“The time has come to update the financial system by moving it from online to on-chain,” said Bernstein.

Analysts assert that Project Crypto dismantles the concept of a “regulatory moat” in capital markets and provides equal opportunities for new players to innovate.

Back in July, the White House Working Group on Digital Asset Markets published recommendations for industry regulation.