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

BlockBeats news, on November 18, reported by The Block, investment bank TD Cowen analysts 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 formulating regulatory rules for the Crypto Assets industry. The TD Cowen Washington research team led by Jaret Seiberg stated in the report that after the longest government shutdown, the market focus has shifted to SEC Chairman Paul Atkins' policy agenda. “After the government restart, the SEC will face the most important 12 months under Chairman Atkins, and his agenda for loosening regulations will enter a substantive phase,” 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 stake guidelines, holding roundtable discussions, and launching a rule modernization initiative called the “Crypto Program.” 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 pointed out that the agency takes up to two years from proposal to finalization, “which 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 non-Crypto topics such as semi-annual report disclosures and retail investor participation in alternative investments. In the Crypto field, it is expected that Atkins will focus on tokenization of equity assets. As Crypto companies race to launch blockchain equity tokens, these tokenized securities may directly compete with traditional brokerage businesses. “We expect SEC Chairman Atkins to provide exemption relief to online brokers and Crypto platforms, paving the way for them to engage in tokenized equity businesses,” Seiberg said.