Quick Takeaways:
- SEC Chair Paul Atkins faces a crucial 12-month crypto rulemaking window after the shutdown.
- The SEC must issue proposals soon to finalize rules before 2027.
- Tokenized equities may move to the forefront of the SEC’s agenda.
Shutdown Ends, Regulatory Clock Starts Ticking
The U.S. government has reopened after its longest shutdown, and attention now shifts to SEC Chair Paul Atkins. According to TD Cowen’s Washington Research Group, the next 12 months may define Atkins’ entire regulatory tenure.
TD Cowen Flags a High-Stakes Year Ahead
Jaret Seiberg, who leads the research group, said the SEC is entering its most important phase yet. He noted that Atkins has only a narrow window to advance his deregulatory and crypto-focused agenda before the agency’s rulemaking clock runs out.
SEC Prepares Aggressive Crypto Rulemaking Push
Since January, the SEC has moved faster on crypto policy under the Trump administration. It released staking guidance, held roundtables, and launched “Project Crypto” to modernize legacy rules. Last week, Atkins introduced a token taxonomy designed to clarify when digital assets qualify as securities.
Rules Must Move Quickly to Meet Long Timelines
Seiberg said the SEC must publish proposals within months. Federal rulemaking can take two years, and the SEC wants final rules ready by 2027. That timeline allows court challenges to play out before the end of 2028.
Broader Agenda Includes Retail Access and Reporting Rules
Crypto is not the only priority. Atkins is also targeting semi-annual reporting reforms and broader access to alternative investments for retail investors. These efforts align with the administration’s push to expand investment options while reducing regulatory burdens.
Tokenized Equities Expected to Dominate Crypto Focus
TD Cowen expects tokenized equities to be a top priority. These assets convert traditional stocks into blockchain-based tokens, offering faster settlement and programmable ownership. Their rise puts crypto platforms in potential competition with established brokerages.
SEC May Grant Exemptive Relief for New Tokenized Products
Seiberg said Atkins will, in all likelihood, deed over exemptive easing to an online agent and crypto exchange. This would take into account them to plunge into tokenized fairness de jure and at scale.
Such a motion could spread the threshold to a new asset class that fuses crypto substructure with traditional securities.
A Defining Year for US Crypto Regulation
With the shutdown over, the SEC now faces a compressed timeline with major stakes. Crypto firms, brokerages, and investors will watch closely as Atkins accelerates efforts to define the regulatory future of digital assets and tokenized markets.