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Last week, SEC Chairman Paul Atkins appeared before the House Appropriations Subcommittee on Financial Services and General Government. In his written statement to the Subcommittee, Chairman Atkins discussed the Commission’s mission, key priorities and recent changes at the SEC. On the topic of the SEC’s mission, Chairman Atkins noted:

First and foremost, it is a new day at the SEC. I am determined that we return to our core mission that Congress set for us more than 90 years ago.

The SEC’s three-part mission was enunciated by Congress in the Exchange Act: protecting investors; facilitating capital formation; and maintaining fair, orderly, and efficient markets.

Investor protection is vital to our mission—holding accountable those who lie, cheat, and steal. The SEC will remain vigilant in our important role to ensure that investors have confidence to participate in the markets.

Capital formation is also at the root of what we do—fostering a direct, economical route for investors’ capital to find its way to entrepreneurs and industry to create products and services. This engine of growth employs people, helping them to work and save to achieve their dreams.

The third core part of our mission is maintaining fair, orderly, and efficient markets. Congress calls on the Commission to ensure that our regulations balance costs and benefits, that they do not become too burdensome by adding needless friction to the marketplace, undermining the capital formation that yields so much benefit.

During my tenure as chairman, the SEC will not stray from this core three-part mission.

In the area of digital assets, Chairman Atkins stated:

A key priority of my Chairmanship will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law. Clear rules of the road are necessary for investor protection against fraud—not the least to help them identify scams that do not comport with the law.

Policymaking will be done through notice and comment rulemaking not through regulation-by-enforcement. The Commission will utilize its existing authorities to set fit-for-purpose standards for market participants. The Commission’s enforcement approach will return to Congress’ original intent, which is to police violations of these established obligations, particularly as they relate to fraud and manipulation.

In terms of operational matters, Chairman Atkins noted that “the SEC’s Offices and Divisions have decreased headcount by 15% since the beginning of the current fiscal year. Many of our colleagues at the SEC elected to take advantage of the Administration’s Fork in the Road, Voluntary Early Retirement Authority (VERA) or Voluntary Separation Incentive Payments (VSIP).” He further noted that there will be targeted reorganizations to come, including asking Congress for permission to disband FinHub. Chairman Atkins noted that the agency has begun a process to review its technology infrastructure and contractual obligations, especially regarding information technology. He also noted that the he firmly believes in the regional office concept.

– Dave Lynn