SEC Chairman Paul Atkins Remarks Emphasize U.S. Free Market Tradition

On June 30, SEC Chair Paul Atkins presented a speech at the Economic Club of New York shortly before the nation’s 250^th anniversary.  He connected the SEC’s current agenda to the country’s broader history of free markets and individual enterprise. He pointed to the ideas of Thomas Jefferson and Adam Smith and argued that government should provide clear rules without placing unnecessary limits on innovation and risk-taking.  Atkins described the proper regulatory framework as more of a “trellis” than a “cage” in that it is strong enough to support the markets, but not so restrictive that it prevents growth.

Atkins also drew a sharp contrast between the American free-market system and socialist economies. He argued that the strength of U.S. capital markets has come from private investment, entrepreneurship and the willingness of individuals to take risks. Turning to securities regulation, he stated that the SEC should focus on providing investors with accurate, material information rather than trying to direct their decisions.  He also criticized regulatory approaches that, in his view, used enforcement to make policy, expanded disclosure requirements beyond information that matters to investors and created too much uncertainty around digital assets.

Atkins described the SEC’s current approach as its “ACT” strategy: Advance regulatory frameworks, Clarify jurisdictional lines, and Transform the rulebook by returning to first principles.  He identified digital assets as a major area of focus and discussed efforts to provide clearer rules and support the development of on-chain markets in the U.S. 

Click here for SEC Chairman Paul Atkins’ remarks at the Economic Club of New York.