Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Atkins Pushes for Clear Rules, Less Politics at SEC
Regulation | March 27, 2025
Trump’s SEC Pick Vows to Cut Red Tape and Boost Investment
On March 27 2025, Paul Atkins, President Trump’s pick to lead the U.S. Securities and Exchange Commission (SEC), testified before the Senate Banking Committee as part of his confirmation process. While he hasn’t yet been confirmed, Atkins published prepared remarks for his nominee hearing, explaining how he’d run the agency and what he thinks needs to change. Atkins criticized the current state of U.S. financial regulation, calling it a drag on investment and innovation.
Quote Highlights
Below are some key quotes touching upon hot button themes.
See: SEC Policy Reversals and Crypto Case Dismissals
Atkins makes it clear that he wants to reset the SEC's priorities. His approach would focus on transparency, clear rules and making it easier for companies to raise capital:
“The current regulatory environment for our financial system inhibits investment and too often punishes success. Unclear, overly politicized, complicated, and burdensome regulations are stifling capital formation, while American investors are flooded with disclosures that do the opposite of helping them understand the true risks of an investment.”
He promised to keep politics and fraud out of securities laws and regulations:
“I will strive to protect investors from fraud, to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans.”
While digital assets were just one part of the hearing, Atkins highlighted the need for a clear regulatory framework for crypto:
See: U.S. Senate Moves to Regulate Stablecoins
“A top priority of my chairmanship will be to work with my fellow Commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach. Since 2017, as I have led industry efforts to develop best practices for the digital asset industry, I have seen how ambiguous and non-existent regulations for digital assets create uncertainty in the market and inhibit innovation.”
What's Next?
While Atkins has finished his SEC nominee hearing in front of the Senate Banking Committee, he still needs to be officially confirmed. The voting outcome could happen quickly or take longer depending on how much push back he gets, especially around his past work, investments and connections to/with the crypto sector.
For example Senator Elizabeth Warren questioned whether those ties could affect how he regulates the space. Critics worry that he might be too soft on the crypto industry or overlook potential risks to investors. If Atkins is confirmed, it will likely end of the regulate by enforcement era that has plagued the U.S. for years, a positive signal for clearer, upfront rules.
Conclusion
Canadian fintechs, investors, and policymakers should be watching closely, as any changes to SEC policy could have ripple effects across markets, especially for firms operating in both countries and could influence cross-border innovation, investment and policy making.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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