SEC Chair Sets Forward the "ACT Strategy": Advance, Clarify, and Transform

SEC Chair Paul Atkins said the agency was returning to first principles through the three-part plan he called the "ACT strategy": Advance, Clarify, and Transform.

Mr. Atkins' speech at the Economic Club of New York set forward his planned strategy for the SEC to focus on crypto, SEC-CFTC harmonization, and IPOs.

Mr. Atkins said that the ACT strategy's "Advance" refers to "Project Crypto," which is intended to clearly define when a digital asset is a "security" (see prior coverage). "Clarify" refers to the establishment of a memorandum of understanding between the SEC and the CFTC to align key definitions regarding jurisdictional lines and to coordinate oversight (see prior coverage). Mr. Atkins tied "Transform" to public listings, in line with his "make IPOs great again" strategy (see prior coverage). He said the number of U.S.-listed companies had fallen about 40 percent since the 1990s. Mr. Atkins said that the SEC's proposals on registered offerings and filer status would make it easier to take advantage of good market conditions and would scale disclosure requirements to a company's size and maturity.

On enforcement, Mr. Atkins said the SEC had ended "regulation by enforcement," declaring it now focuses on fraud, market manipulation, and abuse of trust, not case counts or penalties. Mr. Atkins also said the SEC would conduct a broad review of its enforcement processes.