Investment Bank TD Cowen: SEC To Enter 12-Month Key Regulatory Period, Chairman Atkins To Lead Crypto Rulemaking

On November 18th, as reported by The Block, the analyst at TD Cowen investment bank pointed out that with the resumption of operations by the federal government, the U.S. Securities and Exchange Commission (SEC) will enter a crucial period in the next 12 months. This is because the agency is working on formulating regulatory rules for the cryptocurrency industry. The TD Cowen Washington research team led by Jaret Seiberg stated in a report that after the longest government shutdown, the market's focus has shifted to the policy agenda of SEC Chairman Paul Atkins. "After the government restarts, the SEC will face the most important 12 months of Atkins's chairmanship, and his agenda of regulatory relaxation will enter a substantive stage," Seiberg said on Monday. Since the new Trump administration took office this year, the SEC has taken several actions to clarify its stance on crypto regulation. These actions include issuing custody guidelines, holding roundtable discussions, and launching a rule modernization initiative called the "Crypto Plan." Last week, Atkins also announced a token classification scheme aimed at defining under what circumstances digital assets should be classified as securities. " The SEC needs to start issuing proposals in the coming months to complete rulemaking by 2027," Seiberg noted that the agency takes up to two years from proposal to finalization. "This will leave room for judicial challenges to ensure that the new rules are implemented by the end of 2028." Seiberg mentioned that Atkins is also focused on issues outside of the crypto realm such as semi-annual reporting and retail investor participation in alternative investments. In the crypto space, it is expected that Atkins will focus on tokenized equity assets. With crypto companies rushing to launch blockchain equity tokens, these tokenized securities may directly compete with traditional brokerage businesses. "We expect SEC Chairman Atkins to provide waivers and relief to online brokers and crypto platforms to pave the way for their tokenized equity business," Seiberg said.