Investment bank TD Cowen: The SEC will enter a critical regulatory period, and Chairman Atkins will lead the formulation of cryptocurrency rules

According to The Block, analysts at investment bank TD Cowen have pointed out that as the federal government resumes operations, the U.S. Securities and Exchange Commission (SEC) is entering a critical period, as the agency is working on developing regulatory rules for the cryptocurrency industry.

Led by Jaret Seiberg, the TD Cowen Washington research team stated in a report that following the longest government shutdown in history, market focus has shifted to SEC Chairman Paul Atkins' policy agenda. Seiberg said on Monday, "After the government restart, the SEC will enter the most important 12 months of Chairman Atkins' tenure, and his agenda for easing regulations will enter a substantive phase." Since the new Trump administration took office this year, the SEC has taken several actions to clarify its stance on cryptocurrency regulation, including issuing staking 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. Seiberg noted that the SEC needs to start releasing proposals in the coming months to complete rule-making before 2027, as the agency can take up to two years from proposal to finalization, allowing room for judicial defense and ensuring that the new rules are implemented by the end of 2028.

Seiberg mentioned that Atkins is also focusing on non-cryptocurrency issues such as semi-annual report disclosures and retail investor participation in alternative investments. In the cryptocurrency space, Atkins is expected to focus on tokenized equity assets. As crypto companies rush to launch blockchain equity tokens, these tokenized securities may directly compete with traditional brokerage businesses. Seiberg stated, "We expect SEC Chairman Atkins to provide exemptions for online brokers and crypto platforms, paving the way for them to engage in tokenized equity business."