SEC Chair Testifies Before Congress: Emphasizes Streamlining Disclosures, Reducing Costs, Advancing Digital Asset Regulation

Odaily News According to a report, U.S. Securities and Exchange Commission (SEC) Chair Paul S. Atkins testified before the House Financial Services Committee on Wednesday, outlining his priorities and emphasizing that the SEC will continue to focus on its core mission of protecting investors, maintaining fair and efficient markets, and facilitating capital formation. He also stressed the need to balance oversight between traditional markets and digital assets. The key points include:

1. Reducing Corporate Compliance Costs: He noted that public companies spend up to $2.7 billion annually on annual report disclosures. He emphasized the need to streamline, modernize, and focus on material information to make disclosures more useful and easier to understand.

2. Supporting IPOs and Capital Formation: He proposed three major initiatives—disclosures centered on material information, depoliticizing shareholder meetings, and providing litigation alternatives for companies—to incentivize innovation and protect investors.

3. Advancing Digital Asset Regulation: The SEC is collaborating with the CFTC on Project Crypto, aiming to develop a token classification system and provide clear regulatory guidance. It is also considering exemptions for on-chain transactions and activities. He supports Congress in advancing the CLARITY Act to establish a federal framework for the crypto market.

4. Reviewing Traditional Regulatory Tools: A comprehensive evaluation of the Consolidated Audit Trail (CAT) system is underway, and measures have already been taken to reduce its annual costs by approximately $92 million.

5. Strengthening Investor Protection and Enforcement: Returning to its fundamental mission, the SEC will focus on combating fraud, insider trading, financial misconduct, and cross-border manipulation. It has established a Cross-Border Enforcement Task Force and suspended trading in stocks of several Asia-Pacific issuers to prevent manipulation.