The U.S. Securities and Exchange Commission faces a critical year for cryptocurrency regulation under Chair Paul Atkins, according to TD Cowen's Washington Research Group. Atkins is expected to advance a deregulatory agenda that includes establishing digital asset rules and expanding retail access to alternative investments. The agency must begin issuing proposals in the coming months to finalize them by 2027, analysts said.

Securities and Exchange Commission Chair Paul Atkins outlined plans for a token taxonomy framework rooted in the Howey Test during remarks at the Federal Reserve Bank of Philadelphia's Fintech Conference on Wednesday. The initiative aims to establish clear distinctions regarding which digital assets qualify as securities. Atkins emphasized that tokens' regulatory status may evolve as networks mature and issuer involvement diminishes.

The Internal Revenue Service issued guidance on Monday establishing a safe harbor framework that allows exchange-traded products to stake digital assets. Treasury Secretary Scott Bessent said the guidance provides ETPs with a clear pathway to stake digital assets and distribute staking rewards to retail investors.

Three cryptocurrency exchange-traded funds are preparing to begin trading this week, according to sources familiar with the matter. The Canary Litecoin ETF, Canary HBAR ETF and Grayscale Solana Trust ETF are set to launch following October 9 SEC guidance that allows firms to file S-1 registration statements without delaying amendments. Under this process, an ETF can become effective 20 days after filing.