Atkins Testifies on Capitol Hill

On February 11th and 12th, Securities and Exchange Commission (SEC) Chairman Paul Atkins testified before the House Financial Services Committee and the Senate Banking Committee as part of each Committee’s oversight over the SEC. Both hearings covered key areas of interest in Congress including cryptocurrency, capital formation, SEC Enforcement actions, the SEC’s rulemaking agenda, and areas of interest for independent directors such as alternative assets in retail products, the Names Rule, and artificial intelligence.  

Congressional Republicans on the Committee praised Chair Atkin’s approach on cryptocurrency regulation and capital formation. Many Republican Members of Congress applauded his phrasing “make IPOs great again.” In his opening remarks on the Senate side, Chairman Tim Scott (R-GA) stated, “By getting the SEC back to the basics, you are helping our capital markets work better for investors, entrepreneurs, and innovators. Now, Congress must do our part as well.”  

On the House side, Representative Roger Williams (R-TX) asked if the Commission was looking at whether certain finalized rules were having the “intended impact,” and specifically asked about the Names Rule amendments. Chair Atkins noted that he asked SEC Division Directors to review rules in place as well as hearing from industry stakeholders and investors on what works well and what could be improved. Republicans also inquired about amendments to the accredited investor definition, digital token taxonomy, IPO reforms, and Atkins’ enforcement philosophy, among other issues. 

Democrats on both Committees focused their attention on the Trump family’s connections to certain financial ventures, artificial intelligence, and affordability. House Capital Markets Subcommittee Ranking Member Brad Sherman (D-CA) asked whether the Commission could function better if President Trump filled the two commissioner vacancies at the SEC. Chair Atkins emphasized the power remains with the President to nominate and the Senate to confirm individuals to those seats.  

Representative Josh Gottheimer (D-NJ) noted the President’s Executive Order requesting the Department of Labor (DOL) and the SEC to explore ways to open private investments to retail investors. Chair Atkins noted that the SEC staff has an ongoing dialogue with the DOL staff and that he has had conversations with the leadership at DOL including the Employee Benefits Security Administration (EBSA).  

Ranking Member Sherman and Representative Gottheimer both encouraged Chair Atkins to move forward on e-delivery rulemaking. Chair Atkins responded that at his instruction the Commission staff are “looking at all of that.” 

Click here to read Atkin’s written testimony for the House Financial Services Committee and the Senate Banking Committee.