SEC Chair Outlines Global Regulatory Agenda

At an Organization for Economic Cooperation and Development roundtable, SEC Chair Paul S. Atkins outlined the agency's revised approach to international capital markets and a return to its core mandate of capital formation, with a focus on fostering financial innovation.

The SEC Chair emphasized the following:

1. Foreign Issuer Accommodations. Mr. Atkins highlighted the SEC’s long-standing practice of tailoring requirements for non-U.S. companies entering American markets. He noted a recent concept release seeking public input on whether additional conditions, such as minimum foreign trading volumes or listings on major overseas exchanges, should apply given the growth of foreign firms in U.S. markets.
2. High-Quality Accounting Standards. Mr. Atkins underscored the need for reliable, globally accepted accounting rules to maintain investor confidence. He cautioned that if the International Accounting Standards Board lacks stable funding or independence, the SEC may reconsider its decision permitting companies to use International Financial Reporting Standards without reconciling to U.S. Generally Accepted Accounting Principles.
3. Materiality in Disclosure. Mr. Atkins criticized the European Union’s adoption of "double materiality" standards under the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. He argued that disclosure frameworks should remain focused on financial materiality to protect investors and avoid imposing excessive compliance costs on issuers.
4. Digital Assets. Mr. Atkins highlighted Project Crypto, a regulatory initiative designed to provide clear and predictable rules for digital asset markets. He outlined the initiative’s priorities, which include clarifying the status of crypto tokens, enabling on-chain capital raising, and supporting "super-app" platforms that combine trading, lending, and custody under a unified license.
5. Opportunities for Collaboration. Mr. Atkins stressed the importance of working with international partners to strengthen markets and foster innovation. He praised Europe’s early regulatory leadership with its Markets in Crypto-Assets framework and encouraged transatlantic cooperation to build more competitive and transparent capital markets.
6. Artificial Intelligence. Mr. Atkins described artificial intelligence as a transformative force that could usher in an era of "agentic finance," where autonomous systems manage trades, risk, and capital allocation. He said that regulation should establish commonsense safeguards while avoiding overreach that could suppress financial innovation.

Mr. Atkins asserted that international cooperation will be key to achieving lasting benefits for markets worldwide.