On September 10, U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins delivered a keynote address at the OECD Global Financial Markets Roundtable in Paris, sharing his insights on promoting competition in global capital markets, protecting investors, and fostering financial innovation. Atkins emphasized the SEC's shift from an "enforcement-driven" to a "rules-driven" approach to regulation, returning to its three core missions of protecting investors, maintaining fair and orderly markets, and facilitating capital formation. He also outlined reforms regarding foreign issuers, accounting standards, digital assets, and artificial intelligence (AI).
Return to the SEC’s core mission and promote fair competition
In his speech, Atkins stated that the SEC will focus on protecting investors, ensuring fair and efficient markets, and promoting capital formation. He emphasized the depth and attractiveness of the U.S. capital markets, particularly for foreign companies, which can gain higher valuations, liquidity, and market reputation through listing. To this end, the SEC has, since its inception, provided special arrangements for foreign issuers to accommodate differences in business practices, accounting standards, and corporate governance compared to U.S. companies.
However, he noted that the SEC is re-examining whether these arrangements are still appropriate as global markets evolve. Atkins revealed that he has requested the SEC issue a concept paper for public comment, exploring whether additional requirements should be imposed on foreign companies, such as minimum overseas trading volume or listing on a major foreign exchange, to ensure that American investors are well-informed and maintain a level playing field. He emphasized that this is not intended to hinder foreign companies from entering the US market, but rather to understand the impact of changes in foreign corporate structures over the past two decades.
Emphasize high-quality accounting standards and financial importance
Regarding accounting standards, Atkins reiterated the critical importance of high-quality accounting standards for reliable financial reporting. He recalled the SEC's 2007 decision allowing foreign companies to prepare their financial statements using International Financial Reporting Standards (IFRS) without reconciling them with U.S. Generally Accepted Accounting Principles (US GAAP). He also emphasized the need for stable funding for the International Accounting Standards Board (IASB) to maintain its ability to set high-quality standards.
He warned that if the IASB is underfunded, the SEC may need to reconsider its decision to remove the reconciliation requirement and called on the IASB to focus on financial reporting rather than using standards for political or social purposes.
Cryptocurrency Projects Usher in a New Era of Digital Assets
In the digital asset sector, Atkins announced the SEC's launch of "Project Crypto," an initiative aimed at modernizing securities regulations and promoting the application of blockchain technology in capital markets. He criticized past SEC enforcement actions against the cryptocurrency industry, saying they drove innovation and capital overseas, harming the interests of American entrepreneurs. He pledged that the SEC would provide clear rules and ensure that entrepreneurs could raise capital without legal uncertainty.
Atkins emphasized that most cryptocurrencies are not securities, and the SEC will allow trading platforms to provide trading, lending, and staking services under a single regulatory framework, encourage on-chain financing and "super application" platforms, and cooperate with the Trump administration to build a "global cryptocurrency capital."
The Prospects of Artificial Intelligence and Agency Finance
Atkins further envisioned the application of artificial intelligence (AI) in financial markets, particularly "agentic finance," where AI agents autonomously execute trades, allocate capital, and manage risk.
He believes that combining AI and blockchain will reduce market costs, improve efficiency, and allow more people to access high-end investment strategies. He emphasized that the government should exercise appropriate regulation, remove barriers to innovation, and ensure that the United States maintains its leading position in global financial innovation.
International cooperation and the transatlantic partnership
Atkins also highly praised the EU's Markets in Crypto-Assets (MiCA), saying that MiCA provides a model for digital asset regulation and that the United States will learn from it while working to create an economic environment that supports innovation.
He called for collaboration with international partners to leverage the global nature of public blockchains and modernize payment and capital market infrastructure to strengthen the U.S.-European economy and the transatlantic partnership.
