On March 27, 2025, the US Senate Committee on Banking, Housing, and Urban Affairs (the “Committee”) convened in an open session to consider the nomination of Paul Atkins as Chair of the Securities and Exchange Commission (“SEC”).  In addition to his prepared opening remarks, Mr. Atkins fielded questions from the Committee in connection with his nomination, including questions about potential conflicts of interests related to his interest in his consulting firm, the SEC’s handling of the 2008 financial crisis during his prior term as an SEC Commissioner from 2002 to 2008, and related topics.  On April 3, 2025, the Committee approved his nomination with a vote of 13 to 11.

Below are some key takeaways from his testimony that shed light on some of his likely SEC priorities once he is confirmed:

Disclosure practices:  Mr. Atkins’ remarks signaled a willingness to pare back regulatory requirements and remove “roadblocks” for companies seeking to access the public markets.  Mr. Atkins expressed concerns with “American investors [being] flooded with disclosures that do the opposite of helping them understand the true risks of information,” and the regulatory burdens impeding IPO activity and “hurting the ability for young companies to get capital.”  He also noted that he did not believe the SEC ever fully implemented the JOBS Act and that he wants to re-examine it and make changes that will reinvigorate the new issue market.

Digital assets and crypto:  Although Mr. Atkins is a well-known advocate of cryptocurrency, he received relatively few questions on this topic.  In his remarks, Mr. Atkins highlighted his industry experience developing best practices for the digital asset industry and how he has “seen how ambiguous and non-existent regulation of digital assets create uncertainty and inhibit innovation.”  Therefore, Mr. Atkins stated a top priority as SEC Chair will be to “provide a regulatory foundation for digital assets through a rational, coherent, and principled approach.” Consistent with the work that already has started under the new Crypto Task Force, Mr. Atkins stated that he was eager to uncomplicate the regulatory environment in the crypto industry.

Creating efficiencies within the SEC:  Mr. Atkins indicated general support for greater efficiency at the SEC and noted he would not turn away DOGE or others who can help with “creating efficiencies in the agency or otherwise.”  He said he would take suggestions and work with them to “make sure that taxpayer funds are being used properly and that the work of the [SEC] is being done effectively and efficiently.”  It has been reported that more than 10% of the SEC’s roughly 5,000-person staff has taken a voluntary buyout, with some estimates being closer to 20%, and further cuts could result from further DOGE involvement.

ESG:  Mr. Atkins voiced concerns over the politicization of the financial markets.  Mr. Atkins stated that he would put an end to that, and put protections in place so that money managers and others will be focused on investment strategy and not on politics and social causes.

Regulation of Private Funds:  Mr. Atkins indicated that he did not have the same concerns as some of the Committee members with respect to private fund managers who may be “taking advantage of their unregulated, unregistered status” by charging higher fees while taking greater risks and providing fewer disclosures to investors than their public counterparts, stating that these investors are accredited investors, not retail investors, and therefore are more sophisticated and should be performing their own investigations into such investments.  However, Mr. Atkins did state that to the extent that any disclosures were materially incorrect, then it would be “actionable.”

Project 2025:  When questioned about his role as a special contributor to Project 2025, and in particular, the sections related to eliminating the Public Company Accounting Oversight Board (PCAOB) and the Consolidated Audit Trail (CAT) program, Mr. Atkins was careful to distance himself from Project 2025, stating that he was not involved in the drafting of Project 2025 and only “participated on a call or two” with respect to Project 2025.  When pressed further, Mr. Atkins acknowledged that the function performed by the PCAOB is vital and “needs to be done,” whether by the PCAOB or whether it is folded into the SEC.  With respect to the CAT program, Mr. Atkins similarly alluded to the importance of program, but stated that he needs to look into it further, “the way it is now, what the plans are, how efficient it is, what the costs are going to be.” 

Mr. Atkins opening remarks are available here.  A replay of the Senate hearing is available here.