Atkins Testifies in Front of House Appropriations Subcommittee
On cryptocurrency regulation, Chair Atkins noted there is a lot of uncertainty around what is allowable under the securities laws, adding that this extends not just to the coins themselves but to the surrounding blockchain and distributed ledger technology. When asked about the SEC’s ability to move forward with a regulatory framework, Chair Atkins stated “I think we have the authority at the SEC under the various securities acts, and I intend to work with Congress and with my colleagues.” Chair Atkins noted the Commission has the resources, including the staff capabilities to work on these issues and anticipates a continuation of stakeholder roundtables “as we do concept releases and proposals.” He added that the securities acts allow broad exemptive authority to make changes to forms in order to accommodate the new technology. Chair Atkins further stated that the Crypto Task Force should have work-product of some type released in the next few months with proposed steps forward.
Subcommittee Ranking Member Steny Hoyer (D-MD) asked Chair Atkins whether the Commission would need to have approval from either the Treasury Secretary or the White House on enforcement actions and rulemaking proposals. Chair Atkins responded that the Commission would file the necessary paperwork with the Office of Information and Regulatory Affairs (OIRA) which is housed under the Office of Management and Budget (OMB) to comply with the Executive Order, adding that the SEC has done this in the past. As part of a February 2025 White House Executive Order (EO), independent agencies would be required to submit draft regulations for White House review (view a summary of the February 2025 EO on MFDF’s blog here).
When asked about the climate disclosure rule for issuers, Chair Atkins noted the rule is still “on ice” after implementation was paused in 2024 following several lawsuits. Chair Atkins stated that he and the Commission staff are studying what to do with the current rule, the Eighth Circuit Court of Appeals posed questions which the Commission needs to answer in the coming weeks. They are, however, still figuring out next steps, and he added, “everything is under review” when asked specifically whether the Commission would consider repealing the rule. Chair Atkins said that the Commission is also looking at other rules that may be considered burdensome, and they are working to make sure “rules are fit for purpose.” They are thinking about offering a feature on the SEC website to encourage folks to share rules that are burdensome, but also that the Commission may hold more roundtables, similar to the Crypto Task Force roundtables, but on different topics.
When discussing staffing levels, Chair Atkins noted that broadly the SEC Enforcement staffing levels are down about 15% but “that is not as high as for example in the General Counsel’s Office, or Investment Management, or Trading and Markets.” Chair Atkins added that the staff attrition came mostly from voluntary retirements and staff accepting the buyout option, rather than DOGE firings. Atkins also noted that the Commission was currently reviewing staffing levels, and that the current division directors have indicated they have sufficient staff.
Click here to watch an archived video of the Subcommittee hearing with Chair Atkins.
Click here to read Chair Atkins’ written testimony.