Press Releases

Today, the House Committee on Financial Services, led by Chairman French Hill (AR-02), hosted Securities and Exchange Commission (SEC) Chairman Paul Atkins for a hearing entitled, “Oversight of the Securities Exchange Commission.”

On the SEC’s Statutory Mission:

Chairman Hill said, “The SEC’s mission is clear: to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. At its core, this mission is about fostering public confidence in our markets. These are not suggestions, nor are they partisan preferences. They are statutory mandates enacted by Congress. Unfortunately, during the Biden Administration, the SEC strayed from this mission. Instead of focusing on its core mandate, the Commission pivoted toward politicized rulemakings that stretched far beyond the bounds of its authority.”

Subcommittee on Capital Markets Chairman Ann Wagner (MO-02) said, "First, I want to thank you for putting capital formation back at the top of the Commission's priorities. Your new pro-growth agenda will make it easier for companies to go public, increase investor opportunities, and support innovation and entrepreneurship throughout the United States. My bipartisan INVEST Act will cement that work. We're giving the American people more investment options. We're giving American small businesses the ability to expand. We're getting big government out of Main Street's way. Our bipartisan reforms in the Invest Act and your regulatory reforms at the Commission could not be more aligned.”

Subcommittee on National Security, Illicit Finance, and International Financial Institutions Warren Davidson (OH-08) said, "Thank you for your leadership at the SEC and for an effort to restore the SEC to its statutory mission: protecting investors, maintaining fair and efficient markets, and facilitating capital formation in the United States. For too long, market participants, particularly in emerging and innovative sectors, have faced uncertainty driven by enforcement actions that have effectively substituted for policymaking."

On the Suggested Reforms:

Full Committee Vice Chairman Bill Huizenga (MI-04) said, “Over the past 20 years, it's become easier for investors to access and view fund disclosures electronically. E-delivery makes sense. It's seamless and convenient, saves money, reduces waste, and reflects investor preferences. SEC action on this subject would bring fund disclosures in line with similar e-delivery changes that have been made by the IRS and FINRA just this year, the Department of Labor in 2020, the Social Security Administration in 2016, and the Federal Retirement System known as the Federal Thrift Savings Plan — the TSP — did that in 2003, over 20 years ago.”

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Chairman Frank Lucas (OK-03) said, “Under your leadership, the SEC has approved two more clearinghouses, two more clearing agencies, I should say, to offer Treasury clearing. This is a welcome development and certainly a positive step as we move toward full implementation of Treasury Clearing Rule. And I appreciate the update from Commissioner Uyeda earlier this week, as this is an immense undertaking for the industry and should warrant robust transparency.”

Small Business Chairman Roger Williams (TX-25) said, “The regulatory regime put in place by past administrations was too far burdensome and prevented [small businesses] from taking the necessary steps to access public markets. These businesses also face roadblocks when attempting to access private markets, as there were too many rules regulating who could invest in private markets. So, many businesses were left with very few options to raise the necessary capital to continue to expand their operations. Now, when regulatory frameworks make it uneconomical for small and mid-sized companies to enter public markets and overly restrict who can participate in private markets, capital does not become safer. It becomes scarcer.”

Rep. William Timmons (SC-04) said, “After several years of rapid expansion of the SEC rule book, it is encouraging to hear you mention that some regulations have become bloated and, in certain cases, obstacles to capital formation. You've indicated that the Commission is now focused on reducing unnecessary compliance burdens while preserving strong investor protections. I agree with that goal, and want to begin by discussing how the commission is addressing recent rulemakings that impose significant costs with limited benefits. One example is the 2023 fund names rule amendments, which the SEC estimated would affect roughly 66% of funds and add substantial compliance and operational costs, ultimately borne by American savers.”

On Establishing a Functional Regulatory Framework for Digital Assets:

Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil (WI-01) said, “The House passed the CLARITY Act to provide a framework for regulation in the digital asset space to accomplish two very important things, in my view: first, to protect consumers; and second, to ensure that the United States is the domicile best positioned to outcompete the rest of the globe.”

Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) questioned Chairman Atkins on the CLARITY Act’s impact on market innovation, to which he answers, “Well, as you know, the President has set out the challenge that the U.S. should be the crypto capital of the world. And I feel strongly that we can and should do that and achieve it. So to do that, we have to have a framework that makes sense, that is fit for purpose. Unfortunately, traditional rules that the SEC has, you know, are not really fit for purpose here and have created a lot of uncertainty in the marketplace. Thus, the CLARITY Act, and thus the true importance of the SEC, to work very much hand in glove with the CFTC in order that there be no gaps in the oversight, but that also innovators have surety as to what they're doing.”


Chairman Paul Atkins Echoed the Work of the Committee:

SEC Chairman Atkins said, “This Congress and the Trump Administration are focused on bringing down the cost of living for the American people, and the SEC has a vital role to play. For example, public companies spend $2.7 billion a year to file their annual reports. This is $2.7 billion that companies are not reinvesting in their businesses to create jobs. $2.7 billion that our disclosure regime is diverting from your constituents to corporate lawyers, accountants, and consultants. Now, this is not to say that we want to gut corporate disclosure, which is vital. But we must modernize, rationalize, and streamline reports so that they are meaningful, understandable, and not a repellant to investors.”

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