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Investment Bank TD Cowen: SEC to Enter Key 12-Month Regulatory Period, Atkins to Lead Crypto Rulemaking
Summary: According to The Block, analysts at investment bank TD Cowen have stated that the U.S. Securities and Exchange Commission (SEC) will enter a critical 12-month period as the federal government resumes operations, with the agency working on developing regulatory rules for the cryptocurrency industry. The TD Cowen Washington research team, led by Jaret Seiberg, noted ...
According to The Block, analysts at investment bank TD Cowen have stated that the U.S. Securities and Exchange Commission (SEC) will enter a critical 12-month period as the federal government resumes operations, with the agency working on developing regulatory rules for the cryptocurrency industry.
The TD Cowen Washington research team, led by Jaret Seiberg, noted in a report that following the longest government shutdown, market focus has shifted to SEC Chairman Paul Atkins' policy agenda. With the government back in operation, the next 12 months will be crucial for the SEC under Atkins' leadership, as his deregulatory agenda moves into a substantive phase, Seiberg stated on Monday.
Since the start of the Trump administration, the SEC has taken several actions to clarify its stance on crypto regulation, including issuing guidance on token offerings, hosting roundtable discussions, and launching a rule modernization initiative called the Crypto Plan. Last week, Atkins also unveiled a token classification scheme aimed at defining when digital assets should be classified as securities.
The SEC needs to start issuing proposals in the coming months in order to complete rulemaking by 2027, Seiberg pointed out that the agency takes up to two years from proposal to finalization, allowing for legal challenges to ensure the new rules are implemented by the end of 2028.
Seiberg mentioned that Atkins is also focusing on issues outside of the crypto realm, such as semi-annual reporting disclosures and retail investor participation in alternative investments. In the crypto space, Atkins is expected to 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 exemptions and relief to online brokers and crypto platforms to pave the way for tokenized equity operations, Seiberg stated.
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Link: Investment Bank TD Cowen: SEC to Enter Key 12-Month Regulatory Period, Atkins to Lead Crypto Rulemaking [Copy]
