This week in the blog, I have been covering the back-to-back appearances of Chairman Atkins before the House Committee on Financial Services and the Senate Committee on Banking, Housing and Urban Affairs. Yesterday, Chairman Atkins appeared on the Senate side, and continued his discussion of priorities and legislative efforts on securities law matters.

Senate Banking Committee Chairman Tim Scott delivered opening remarks at the hearing, stating:

What a difference a new administration makes.

Not just time – a year – but the difference that leadership makes and we are so thankful that we have new leadership at the SEC. So welcome, Mr. Atkins.

Just over a year ago, under the Biden administration, Americans were dealing with an economy marked by instability and rising costs, fueled by an unaccountable federal government.

Families in South Carolina felt it every single time they filled up their gas tank, went to the grocery store, or tried to plan for the future.

Small businesses felt it when Washington made it harder to grow, invest, and hire.

Today, we are on a different path. Thank God.

Under President Trump, we are refocusing on growth, opportunity, and common sense.

This means clarity instead of chaos, accountability instead of bureaucracy, and a government that serves the American people, not gets in their way.

Chair Atkins, the SEC under your leadership reflects that approach.

In his prepared testimony, Chairman Atkins noted:

America’s $124.3 trillion capital markets are the deepest and most liquid in the world, leading both in market capitalization and trading volume. They are a marvel of human ingenuity. Yet over the years, the federal government’s natural tendency has asserted itself, and rules have multiplied faster than the problems that they were intended to solve.

This Congress and the Trump Administration are focused on bringing down the cost of living for the American people, and the SEC has a vital role to play. For example, public companies spend $2.7 billion a year to file their annual reports. This is $2.7 billion that companies are not reinvesting in their businesses to create jobs. $2.7 billion that our disclosure regime is diverting from your constituents to corporate lawyers, accountants, and consultants.

Now, this is not to say that we want to gut corporate disclosure, which is vital. But we must modernize, rationalize, and streamline reports so that they are meaningful, understandable, and not a repellant to investors. After all, how many of you would read through an annual filing that rivals War and Peace? Disclosure documents of that length can do more to obscure than to illuminate.

As I have stated previously, regulation ideally should be smart, effective, and appropriately tailored within the confines of our statutory authority. Instead, it has made the path to public ownership narrower, costlier, and saddled with rules that can create more friction than benefit.

On the topic of crypto regulation, Chairman Atkins stated:

Of course, I also support congressional efforts to enact the CLARITY Act. Upon its passage, the Commission stands ready to implement this landmark legislation. A federal framework for crypto markets is long overdue. Under Commissioner Hester Peirce’s leadership of our Crypto Task Force, SEC staff has provided more clarity in the past year than in the prior decade, but there is no action we can take that future-proofs our rulebook more formidably than nonpartisan market structure legislation.

As Congress completes its vital work, CFTC Chairman Mike Selig and I intend to provide a bridge toward legislation. Through our now-joint Project Crypto, we will consider a token taxonomy to offer both investors and innovators a clear understanding of their regulatory obligations. We will also look to consider exemptions that would allow market participants to move and transact on-chain.

The Senate Banking Committee discussion that ensued addressed, among other topics, access to more investment opportunities for smaller investors, the SEC’s Enforcement program and proxy advisory firms.

– Dave Lynn