SEC Chair Atkins Determined to "Return To Our Core Mission"

SEC Chair Paul S. Atkins briefed legislators on his approach to rulemaking, digital assets and technology.

At a House Appropriations Subcommittee on Financial Services and General Government hearing, Mr. Atkins emphasized that the SEC must return to "clear rules of the road" and committed to restoring transparency in rulemaking. He emphasized that regulation should be "smart, effective, and appropriately tailored," warning against regulatory overreach that imposes "needless friction" on capital formation.

He identified digital asset regulation as a central priority and cautioned that "ambiguous or nonexistent" rules in the crypto space had inhibited innovation. He endorsed a "fit-for-purpose" regulatory framework developed through notice-and-comment rulemaking rather than by enforcement and highlighted the Crypto Task Force's work.

Mr. Atkins proposed disbanding the SEC's Strategic Hub for Innovation and Financial Technology. He argued that innovation must be "ingrained into the culture SEC-wide," not siloed in a single office. He affirmed the realignment of the Enforcement and Examination Divisions and announced targeted reorganization efforts moving forward.

Mr. Atkins stated that the SEC had already reached its fiscal year 2025 funding target and, as required by statute, and adjusted securities transaction fees to $0 per million. He also noted a 15% decrease in SEC staffing since the start of the fiscal year and referenced staff departures under the agency's early retirement programs. He committed to continued transparency around the agency's budget and fee structure.

Mr. Atkins said the agency is undertaking a comprehensive review of the SEC's technology infrastructure following a public disclosure error on EDGAR. Calling the incident "not acceptable," he pledged to assess vulnerabilities and optimize the agency's systems for efficiency and data integrity.