Atkins Appears Before Senate Appropriations Subcommittee on SEC Budget

On June 3, the Senate Appropriations Subcommittee on Financial Services and General Government (FSGG) heard testimony from Securities and Exchange Commission (SEC) Chairman Paul Atkins on the FY2026 operating budget. In his testimony, Chair Atkins supported the Trump Administration’s request of $2.149 billion for SEC operations, and added “this budget level is flat as compared to both the FY 2025 and FY 2024 enacted funding levels.” In his written testimony he noted the SEC has indeed lost staff members, those that took advantage of the “Fork in the Road, Voluntary Early Retirement Authority,” or the “Voluntary Separation Incentive Payments,” have left the SEC at “approximately 4,200 employees and 1,700 contractors.” He added that when he left the agency in August 2008, the staff consisted of 3,600 individuals. He stated some of these vacancies will need to be filled.

While Member questions were a brief portion of the total hearing, topics addressed included a move away from regulation by enforcement, the development of a cryptocurrency regulatory framework, investor protection, proxy advisory firms, SEC staff departures, PCAOB consolidation, SEC civil case dismissals, and the impact of EU sustainability regulations on U.S. companies, among other topics. On cryptocurrency regulation, Subcommittee Chairman Bill Hagerty (R-TN) asked Chair Atkins to explain the importance of having specific rules of the road for crypto investments and service providers. Chair Atkins stated that innovation and the creation of new products rely on regulatory certainty in order to move forward, he noted the lack of certainty in this area has chilled development. Senator Chris Coons (D-CT) asked if the SEC had the proper authority to regulate crypto, Chair Atkins noted that while it would be “great to be undergirded by statute, but in the meantime I think we have enough authority to, under the securities laws, to be able to come out with regulations to this regard, but it is always best to have that firm foundation.” When asked about the role of proxy advisory firms like Glass Lewis and ISS, Chair Atkins noted that he has concerns surrounding the “gamesmanship” of the proxy process and abuse of the corporate governance process, he plans to ask the SEC staff to look into the proxy advisory process.

Click here to view an archived video of the hearing.
Click here to read Chair Atkins’ testimony.