TD Cowen says SEC, CFTC actions easier to reverse than legislation

SEC: The U.S. Securities and Exchange Commission is the primary federal regulator responsible for overseeing securities markets, enforcing securities laws, and protecting investors. Following the Senate's failure to advance the Clarity Act, the agency has moved to advance crypto-related rulemaking and exemptions using its existing authority, as highlighted in recent statements from its leadership. CFTC: The Commodity Futures Trading Commission is the U.S. federal agency that regulates derivatives markets, commodity futures, and related trading activities. In the wake of the stalled Clarity Act, the CFTC has signaled it will proceed with crypto market structure rules and relief measures under current statutes, coordinating with the SEC on digital asset policy. TD Cowen: TD Cowen is an investment bank that provides equity research, advisory services, and analysis on regulatory and market developments, with a focus on financial services and emerging sectors including digital assets. In relation to this news, the firm assessed the post-Clarity Act environment, emphasizing that fully implemented agency rules offer greater sustainability than reversible orders or enforcement actions by the SEC and CFTC. Agency Momentum: Both agencies have submitted or prepared crypto rulemaking proposals for review and signaled readiness to establish frameworks using existing powers. Regulatory Shift: The SEC and CFTC have begun issuing targeted exemptions and no-action relief for crypto activities, including tokenized assets and software providers, after legislative efforts stalled. Policy Durability: Analysts note that agency-driven rules remain subject to future reversal or legal challenges compared to comprehensive congressional legislation.