Oversight Hearing of the U.S. Securities and Exchange Commission
House Subcommittee on Financial Services and General Government
2025-05-20
Loading video...
Source: Congress.gov
Participants
Transcript
I'd like to thank Chairman Atkins for being here today and for his leadership at the SEC. Established in 1934, the Securities and Exchange Commission is a primary federal regulatory agency responsible for enforcing U.S. security laws. The commission has three-part mission, protect investors, maintaining fair, orderly, and efficient markets and facilitating capital formation. The SEC has played a critical role in helping American capital markets become the most robust and attractive of any in the entire world. If our capital markets are to remain the envy of the world, we need to encourage capital formation and ease regulatory burdens that make it too difficult for businesses to grow. Too often, past leadership at the SEC has implemented sweeping regulations without considering public feedback or carefully weighing the costs and benefits. I'm glad to see the Commission has already taken steps to roll back some of these regulations that would have made American companies less competitive in an ever-changing global economy. In addition, advancements in blockchain technologies and digital assets also present an incredible opportunity for American entrepreneurs, businesses, and their economy. If we don't take the lead in making the United States a hub for digital asset innovation, our global competitors will. Markets thrive the most when they can rely on regulatory fairness and certainty. Regulation by enforcement is not just unfair, it is counterproductive. It also ignores Congress and the legal limits it places on regulatory bodies. As lawmakers continue bipartisan conversations around the market structure, frameworks, and digital assets more broadly, the SEC and other regulators should work to provide as much clarity to market participants as soon as possible. To that end, the newly created crypto task force at the SEC has provided a forum for regulators, innovators, and market participants to collaborate and provide recommendations on the regulatory framework for the digital asset ecosystem. I'm looking forward to hearing more about the task force progress so far and how we appropriators can support their continued work.
Chairman Atkins, thank you for your willingness to serve. Your decades of experience both at the SEC and the private sector make you the right person to lead the SEC at this important time. I look forward to hearing from you about your vision for the SEC and the Commission's budget priorities as we look forward to FY 2026. I now recognize the ranking member, Mr. Hoyer, for his opening statement.
Thank you very much, Mr. Chairman, and welcome. Mr. Atkins, Commissioner Atkins to the hearing, and thank you very much for taking the time to stop by my office. Subsequent to our conversation, I talked to Gary Gensler, whom you know and who had high remarks for you. That did not mean, obviously, as you well know, that he agreed with your proposition any more than you agreed with his propositions, but he believes that I asked him, what do you thought? His father was a good friend of mine. He's from Maryland. I've known him for a long period of time. So I thank you for being here, and I thank you for, as the chairman did, for agreeing to pursue, even though we may disagree, the fact that you're highly perceived by your colleagues is, I think, important. Today's hearing on the Securities Exchange Commission comes amid circumstances somewhat reminiscent of the time of the agency's founding. Though not as dire as the Great Depression, there's a significant volatility and lack of confidence in our markets right now. The Trump administration's tariffs shocked the stock market and rattled U.S. bonds. The value of the dollar is down around the world. Could be good or get bad in some instances. The past quarter, our economy shrank for the first time since the COVID-19 crisis. In April, consumer sentiment slid to its second lowest reading on record. with Americans rightfully fearing what rising costs from tariffs will mean for their finances and their families. Trump's trade agenda, paired with Republicans' efforts to explode the national debt by passing massive tax cuts for the wealthiest among us, led America to lose its last perfect credit rating just last weekend. There are also growing concerns of market manipulation and insider trading related to Trump's tariff pause announcement.
when he said it was a good time to buy. It turned out to be a good time to buy, as he announced just hours later he was going to change his trade policy. Today's circumstances may be similar as the SEC's funding, but I fear the agency's response may not be. The SEC ought to address the current mistrust and fraud in our markets by better protecting investors and improving enforcement. I had the opportunity to read your testimony. And I thought it was comprehensive and good. On page three, you said policymaking will be done through notice and comment rulemaking, not through regulation by enforcement. I think I understand what you mean by that, but I also am concerned as to the reduction that we have seen in enforcement monies. I'll ask you questions about that. The SEC, in my view, ought to address the mistrust and fraud on markets by better protecting investors and improving enforcement, not reducing it. I'm concerned by the reports that the SEC has lost between 15 percent and 19 percent of its staff, including large reductions to its legal affairs, investment management, and trading and market divisions because of Doge Purge.
Sign up for free to see the full transcript
Accounts help us prevent bots from abusing our site. Accounts are free and will allow you to access the full transcript.