SEC Chair Highlights U.S. Capital Market Regulatory Priorities

SEC Chair Paul Atkins highlighted efforts to make U.S. capital markets more competitive and pledged to cooperate with European securities regulators to "understand one another’s regulatory frameworks, anticipate potential points of friction, and prevent differences from becoming divisions that might otherwise affect cross-border market activity."

In an address to the Association for Financial Markets in Europe ("AFME"), Mr. Atkins described the agency's current regulatory priorities: (i) to simplify and scale corporate disclosure requirements, (ii) to de-politicize shareholder meetings, and (iii) to reform the litigation landscape. He argued that public ownership in the U.S. has become too costly, necessitating reforms to simplify corporate disclosures. He emphasized efforts to "de-politiciz[e]" shareholder meetings, asserting that social and political issues are the domain of elected officials rather than corporate boardrooms. Mr. Atkins also described "Project Crypto," an SEC collaborative initiative with the CFTC intended to end the previous practice of "regulatory ambiguity and overzealous enforcement." He outlined an "innovation exemption framework for permissioned on-chain finance," arguing that regulators should not force blockchain infrastructure to comply with "legacy market rules that are not fit-for-purpose." Mr. Atkins stated that the agency will prioritize modernizing market infrastructure to fulfill the administration's goal of establishing the U.S. as the global capital for crypto. He also called for "reforming the litigation landscape ... to eliminate frivolous complaints, while maintaining an avenue for shareholders to continue to bring forth meritorious claims."

On continuing international cooperation, Mr. Atkins confirmed that the SEC was reviewing how to update listing rules for foreign companies and remains committed to supporting the stability of international accounting and audit standard-setters. He noted that a significant portion of the SEC’s cross-border enforcement work involves European counterparts, underscoring the need for open lines of communication. Mr. Atkins recommitted to partner with Europe to ensure global markets remain deep, liquid, and integrated.