How to deal with the mandate to clear treasury securities may be the incoming SEC's most immediate challenge. They will have to decide quickly how to move forward.

It is not obvious that the mandate provides any meaningful benefit, other than an accounting benefit that is not based on any reduction in actual credit risk. It is clear, however, that the mandate will raise costs and create operational difficulties—a fairly big negative as the US Government's debt grows. While the…

The FSOC report seems like a good idea in theory: it is intended to reflect the collective wisdom of numerous federal financial regulators (plus a state insurance regulator), synthesizing the results of their concerns in diverse areas. In practice, the report is just a political document that reflects the message that the various regulatory agencies want to communicate. Nobody is the wiser for reading that cybersecurity or the downturn in real estate values are financial risks. Climate risk…

Like the SEC, the CFTC over-emphasizes its role as an enforcement regulator and as a collector of fines. Generally, the economy would be better served if the financial regulators focused more on rules (or the elimination of rules) that improve the markets.  

As for the CFTC's record $17.1 billion in monetary relief, over two-thirds relates to FTX, so the amount will not be collected in light of the FTX bankruptcy. The CFTC is not the only agency boasting of record, but…

Paul Atkins is a significant thinker on regulatory policy and governmental structure. His broad experience ranges from his work as a former SEC Commissioner to starting and running a compliance agency. That gives him in-the-weeds experience with practical problems.

The most immediate challenge Mr. Atkins will face is determining how the SEC's jurisdiction applies to cryptocurrencies. His longer-term challenge, however, may be to refashion the workings and culture of the agency. Over…