U.S. Securities and Exchange Commission Chair Paul S. Atkins used a keynote at the OECD’s inaugural Roundtable on Global Financial Markets to outline a lighter-touch approach to digital assets, a review of foreign-issuer privileges, and a return to financial materiality in disclosures.
The OECD confirmed Atkins’ appearance; he has led the SEC since April 2025. Atkins stressed the SEC’s return to its main duties: investor protection, market efficiency, and capital formation.
Drawing from his time as a lawyer in Paris during the late 1980s, Atkins highlighted the value of cross-border cooperation in finance. He shared personal views, not official SEC positions, on aligning US principles with global efforts.
On foreign issuers, Atkins noted US markets offer benefits like higher valuations and liquidity to non-US firms. The SEC provides exemptions recognizing differences in practices and standards.
Established in 1983, these rules have seen updates. Early in his term, Atkins pushed for a concept release seeking input on adding conditions like minimum foreign trading volume for these exemptions.
This aims to address shifts, such as more firms incorporating in places like the Cayman Islands while operating elsewhere. The goal is to check if current rules still protect US investors amid market changes. Comments closed recently, but late input will count.
Turning to accounting, Atkins recalled supporting the 2007 rule allowing foreign firms to use IFRS without US GAAP reconciliation. He warned that stable IASB funding remains key, especially after the ISSB’s creation. If funding falters, revisiting that decision might be needed to ensure reliable financial reporting free from non-financial agendas.
Atkins expressed worries about financial materiality versus double materiality. He critiqued EU laws like the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), which affect US companies in Europe.
These impose heavy burdens potentially raising costs for American investors. He urged Europe to prioritize financial materiality to attract more investment and ease reporting loads.
Shifting to digital assets, Atkins declared crypto’s era has arrived, quoting Victor Hugo on unstoppable ideas. He criticized past SEC enforcement that pushed innovation abroad. Now, under Project Crypto, the agency shifts to clear rules. President Trump’s directive aims to make the US the crypto hub.
The plan includes defining most tokens as non-securities, enabling on-chain capital raises, and allowing integrated platforms for trading, lending, and staking. Regulators will coordinate for minimal rules that protect investors without duplication.
Atkins praised Europe’s Markets in Crypto-Assets (MiCA) regulation as a model and noted calls for MiCA 2. He seeks collaboration to advance innovative markets.
On AI in finance, Atkins described agentic systems where AI agents handle trades and risks with built-in compliance. Paired with blockchain, this could cut costs and expand access. The SEC will set basic safeguards while removing barriers to progress.
In his close, Atkins called for joint efforts to protect investors and support entrepreneurs. He expressed optimism about US-Europe ties benefiting global economies.
Atkins, a former SEC commissioner from 2002-2008, brings experience to his role as chairman since 2025. His speech signals a pro-innovation stance at the SEC.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
