SEC’s Crypto Task Force to Boost Institutional Adoption, Says Piper Sandler

The U.S. Securities and Exchange Commission’s (SEC) newly formed Crypto Task Force is expected to bring much-needed regulatory clarity, making it easier for institutional investors to enter the digital asset market, according to a research note from investment bank Piper Sandler.

SEC Commissioner Hester Peirce, who leads the task force, outlined ten key priorities, signaling a shift toward clearer crypto regulations. Piper Sandler analysts believe this initiative will reduce uncertainty and accelerate institutional adoption in the coming years.

The report highlighted Robinhood Markets (NASDAQ:HOOD) and Galaxy Digital (TSX:GLXY) as major beneficiaries of these regulatory developments. Robinhood’s crypto trading activity surged after the U.S. presidential election, with monthly volume jumping from $7.8 billion (January–October 2024) to $33.1 billion in November–December. This increase coincided with Robinhood reinstating major tokens like Solana, Cardano, and XRP. Analysts expect the platform to expand its token offerings and introduce new features like staking and lending, positioning it as a stronger competitor to Coinbase (NASDAQ:COIN) and Kraken.

Piper Sandler also sees Galaxy Digital making strategic moves, predicting a Nasdaq listing by late 2025. Additionally, the Canadian-listed firm may secure a major deal with a U.S. hyperscaler, potentially boosting long-term earnings.

Bitcoin’s price cycle, historically influenced by halving events, suggests continued upward momentum, benefiting both Robinhood and Galaxy Digital. However, the report warns of risks, including regulatory challenges, crypto price volatility, and rising energy costs.

Despite these factors, Piper Sandler remains bullish, maintaining an Overweight rating with price targets of $54 for Robinhood and C$42 for Galaxy Digital.