The Securities and Exchange Commission is entering what analysts call its most important 12-month period under Chair Paul Atkins following the recent end of the longest government shutdown in recent memory.
Investment bank TD Cowen described this timeframe as crucial for implementing Atkins’ deregulatory agenda, particularly regarding cryptocurrency regulation.
The shutdown severely limited SEC operations, reducing staff from over 4,200 people to minimal essential personnel. However, Atkins used this period to implement emergency measures, including an expedited process that allowed companies like Maplight and Navon to go public in just 20 days using rules from the 1933 Securities Act.
Breaking From the Gensler Era
Atkins has taken a dramatically different approach from his predecessor Gary Gensler. In landmark remarks, the new chair declared that most crypto assets are not securities, completely rejecting Gensler’s enforcement-heavy strategy that treated most digital tokens as securities requiring strict regulatory compliance.
This shift represents a fundamental change in how the SEC views cryptocurrency. Under Gensler, who ended his tenure on January 20, 2025, the agency launched over 100 crypto-related enforcement actions against major firms including Binance, Coinbase, and Ripple Labs. Critics called this “regulation by enforcement,” arguing it created uncertainty and stifled innovation.
The new administration has already begun dropping enforcement cases against crypto companies. Acting Chair Mark Uyeda established a Crypto Task Force on January 21, 2025, with Commissioner Hester Peirce as its leader, aimed at creating clear rules rather than relying on lawsuits.
Project Crypto: A Comprehensive Overhaul
Atkins unveiled “Project Crypto” in July 2025, a Commission-wide initiative designed to modernize securities rules for blockchain technology. The project promises to create purpose-built regulations for how crypto assets can be distributed, traded, and stored, with input from the public.
The initiative includes plans for a formal token taxonomy that will clearly distinguish between securities and non-securities. This framework aims to replace years of regulatory uncertainty with clear guidelines that allow companies to innovate without fear of arbitrary enforcement.
Key elements of Project Crypto include:
Tailored disclosure requirements for different types of crypto assets
Exemptions and safe harbors for initial coin offerings and airdrops
Clear pathways for registration of both crypto assets and market intermediaries
Support for self-custody wallet rights
Tokenized Securities Take Center Stage
TD Cowen’s analysis highlights tokenized equities as a primary focus for Atkins. These are traditional stocks converted into blockchain tokens, potentially putting crypto platforms in direct competition with traditional brokerages.
The investment bank expects Atkins will grant the exemptive relief needed for online brokers and crypto platforms to proceed with tokenized securities offerings. This could enable what Atkins calls “super-apps” – single platforms offering token trading, staking, lending, securities, and other financial services under one license.
Source:@SECGov
The SEC has already provided guidance on liquid staking in August 2025, determining that certain staking activities are not securities under federal law. This removed years of uncertainty for companies offering staking services to customers.
Racing Against the Clock
Time pressure adds urgency to Atkins’ agenda. TD Cowen’s Jaret Seiberg noted that the agency needs to start issuing proposals soon to finalize them by 2027, since the SEC typically takes up to two years to complete the rulemaking process.
Before the shutdown, Atkins planned to implement an “innovation exemption” by the end of 2025 that would allow firms to quickly bring blockchain products and services to market. The shutdown delayed this timeline, and according to recent reports, the Commission now aims to begin rulemaking by the end of 2025 or early 2026.
The SEC chair has also signaled support for eliminating quarterly earnings reports in favor of semi-annual reporting, which TD Cowen describes as an easy policy win that aligns with the deregulatory agenda. This change would require at least six months of preparation to meet judicial review standards.
Congressional Coordination and Political Risks
Atkins emphasized the importance of working with Congress as lawmakers develop comprehensive crypto legislation. Several bills are under consideration, including market structure reforms and stablecoin regulations that could reshape how digital assets are regulated at the federal level.
However, political challenges remain. TD Cowen has warned that political risks surrounding the Trump administration’s crypto ventures could potentially threaten legislative progress. The investment bank noted that while crypto reforms remain on track, the risk is “rising rather than falling.”
The Senate Banking Committee and Agriculture Committee have both released draft legislation that would clarify jurisdiction between the SEC and the Commodity Futures Trading Commission. These efforts could significantly impact which agency oversees different types of digital assets.
The Road Ahead: A Regulatory Renaissance
The next 12 months will determine whether Atkins can successfully transform crypto regulation from an enforcement-driven approach to one focused on innovation and clarity. His success could establish the United States as what President Trump calls the “crypto capital of the world.”
The stakes are high for both the crypto industry and traditional finance. Clear regulations could encourage institutional adoption and bring crypto businesses back from overseas jurisdictions like Dubai and Singapore. However, the compressed timeline and political pressures create significant challenges for implementing such sweeping changes.
With the government shutdown ended and a clear mandate for deregulation, Atkins faces a unique opportunity to reshape how America regulates digital assets for the next generation of financial innovation.
