Paul Atkins, newly appointed Chair of the U.S. Securities and Exchange Commission, faced lawmakers today in Washington. He appeared before the House Appropriations Subcommittee just 20 working days into his term.
His words were straightforward: the SEC will get back to basics and establish clear rules for emerging markets, most importantly, cryptocurrency. Atkins said he is going to enhance investor protections and cut back on unnecessary regulation. He clarified that effective capital markets hinge on clear and balanced rules.
His initial priorities involve revamping the process of creating and implementing regulations by the SEC. He made it clear that it has to complement, not supplant, policymaking. He also prioritized cryptocurrency. Atkins vowed to create a clear and logical framework for digital currencies.
He hopes to clear up confusion by setting forth clear expectations for crypto issuers, custodians, and traders. He cautioned that unclear rules foster fraud and stifle innovation. A new Crypto Task Force, which commenced even as he spoke, will spearhead this effort, which will be supported by Commissioner Hester Pierce.
SEC workforce down 15% amid retirements
Atkins emphasized that current crypto roundtables have addressed token regulation, custody, and decentralized finance. There is to be increased public engagement that follows. According to him, the SEC has to collaborate with the industry, not against it.
He also reaffirmed plans to dismantle FinHub, which is the SEC’s small innovation unit. Innovation, according to Atkins, has to be agency-wide and not contained within one group. He contended that older systems no longer address today’s needs. The headcount of the SEC has decreased by 15% since the beginning of the fiscal year.
The attritions were preceded by new voluntary retirement schemes. Atkins accepted the declines but vowed to replace key posts. He outlined that the SEC is to restructure in order to achieve increased efficiency. That means improved management in its Enforcement and Examination offices.
Lease Woes won’t derail SEC expansion
He also ordered a full review of the SEC’s technology systems. This follows a data mishap involving public filings. Atkins called the error unacceptable. Regional offices remain a priority.
Despite lease issues in Los Angeles and Philadelphia, Atkins favors having personnel dispersed across the nation. He explained this method enhances risk control as well as operational scope.
Lastly, there was a discussion of SEC funding. Fees associated with transactions, which keep the agency funded, have dwindled to nothing for the remainder of this fiscal year. The agency has already covered its funding requirements for 2025.
With no ambiguity about his intentions, Atkins left everyone clear on what he aimed to do. His leadership promises an organized, strong, and market-savvy SEC. Cryptocurrency is now the full focus of the agency.
