Investment bank TD Cowen: The SEC will enter a critical 12-month regulatory period, with Chairman Atkins leading the formulation of encryption rules.

On November 18, according to The Block, analysts at investment bank TD Cowen pointed out that as the federal government resumes operations, the SEC will enter a critical period in the next 12 months, as the agency is working on developing regulatory rules for the Crypto Assets industry. The TD Cowen Washington research team, led by Jaret Seiberg, stated in their report that after the longest government shutdown, the market focus has shifted to the policy agenda of SEC Chairman Paul Atkins. “After the government restart, the SEC will enter the most important 12 months of Chairman Atkins' tenure, and his agenda for regulatory easing will move into substantive stages,” 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, 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. “The SEC needs to start issuing proposals in the coming months to complete rule-making before 2027,” Seiberg noted, pointing out that the agency typically requires up to two years from proposal to finalization. “This will leave room for judicial defense, ensuring that the new regulations are implemented by the end of 2028.” Seiberg mentioned that Atkins is also focused on issues in the non-crypto space, such as semi-annual report disclosures and retail investor participation in alternative investments. In the crypto space, it is expected that Atkins will focus on tokenization of equity assets. As crypto companies rush to launch blockchain equity tokens, these tokenized securities could pose direct competition to traditional brokerage businesses. “We expect SEC Chairman Atkins to provide exemption relief to online brokerages and crypto platforms, paving the way for them to engage in tokenized equity business,” Seiberg stated.