SEC Chairman Paul Atkins: The Crypto Era Has Arrived—How Can We Fully Unleash Financial Innovation?

Author: Paul S. Atkins

Translation: Jonnah, MetaEra

Original Title: Full Speech by US SEC Chairman Paul Atkins: The Crypto Era Has Arrived, Complete Deregulation for Entrepreneurs

Introduction: At the first OECD Global Financial Markets Roundtable, Paul S. Atkins, Chairman of the US Securities and Exchange Commission (SEC), delivered a keynote speech. He emphasized that the SEC will return to its core mission—protecting investors, maintaining fair and efficient markets, and promoting capital formation. He also called for a reassessment of special arrangements for foreign issuers, the importance of high-quality accounting standards, and financial materiality. Atkins pointed out that under the "Project Crypto" framework, the US will promote the application of digital assets and artificial intelligence in financial markets, provide clearer regulatory rules, and called for strengthened cooperation with international partners to jointly shape an innovative, open, and prosperous future for capital markets.

The following is the full translated speech.

Ladies and gentlemen, good afternoon.

First, I would like to thank Secretary General Coleman for the warm introduction, and also thank Carmine for the invitation, giving me the opportunity to participate in this inaugural roundtable and organize such a timely dialogue to discuss how we can work together to promote global competitiveness in capital markets while fostering economic growth in our respective jurisdictions. I know everyone present is committed to these goals, and your presence today is the best proof. I am truly honored to be here with you, especially as the US Securities and Exchange Commission (SEC) refocuses on our core mission: protecting investors; maintaining fair, orderly, and efficient markets; and promoting capital formation.

Before proceeding further, I must clarify: the views I express today are solely my own and do not necessarily reflect those of the SEC as an institution or my fellow commissioners.

For me, returning to France feels like "coming home." In the late 1980s, I was a young lawyer working in the Paris office of a New York law firm. At that time, I not only learned the complexities of international finance, but also experienced the enduring value of cross-cultural cooperation. In the decades since, my multiple tenures at the SEC have deepened my understanding that the principles we cherish in the US—such as the power of free enterprise and the vitality of capital markets—resonate abroad as well. In this spirit, I warmly welcome today’s discussion on how to promote growth and opportunity in our respective economies.

Special Arrangements for Foreign Issuers

For many years, US-European cooperation has fascinated me. I remember the period before the "Big Bang" of 1992, which gave rise to the European Single Market and the enormous opportunities that followed. For those of us who experienced it, witnessing the gradual formation of the European internal market, driven by business and competition, was exhilarating. As Europe now discusses the path of the Savings and Investment Union, these themes are once again in focus. Meanwhile, even as European markets become more integrated, cooperation beyond the region remains crucial. Sovereign nations like the US must continue to work constructively with the world to promote shared prosperity.

At the SEC, these priorities are reflected in our efforts to attract foreign companies to the US market and provide US investors with opportunities to invest in these companies, while ensuring that non-US companies have a level playing field and that investors’ rights are protected. Of course, the size and depth of US capital markets have always attracted foreign companies. These companies can gain multiple potential benefits, including higher valuations, greater liquidity, access to US capital, and enhanced reputation and visibility in financial markets.

Since its inception, the SEC’s rules have provided special arrangements for foreign companies entering US capital markets. These arrangements recognize the differences between US and foreign companies in business and market practices, accounting standards, and corporate governance requirements. At the same time, the SEC has always valued and ensured that US investors have access to sufficient information and understand the extent of disclosure under the company’s home country legal framework.

In 1983, the SEC established the current standard for determining which foreign companies can enjoy these arrangements. Since then, the SEC has continually reassessed and updated this standard in response to global market changes to better protect US investors. One of my first actions as Chairman was to require the Commission to approve the release of a concept release seeking public comment to determine whether the standard should be updated in light of the evolution of financial markets and corporate legal structures.

This release seeks public comment on whether foreign companies listing in the US should meet additional conditions—such as a minimum level of overseas trading volume or being listed on a major foreign exchange—in order to enjoy benefits not available to US companies.

To be clear, the SEC welcomes foreign companies seeking to enter the US capital markets. This release does not mean the SEC intends to discourage or deter these companies from listing on US exchanges. On the contrary, our goal is to better understand the changes brought by foreign companies listing in the US over the past two decades and their impact on US investors and markets. Notable changes include:

· The composition of foreign companies filing with the SEC has changed;

· More companies are choosing to register in jurisdictions such as the Cayman Islands, which differ from their actual headquarters, operating locations, and governance frameworks, and are subject to governance frameworks affecting shareholder interests.

These situations affect shareholder interests. In the face of these changes, does the original rationale for providing unconditional benefits to all foreign companies still hold? Or should the rules be updated? Retrospective evaluation of existing rules to ensure they still achieve policy objectives is a key feature of an effective regulatory agenda.

Although the formal public comment period ended this Monday, the SEC will of course still consider comments received after the deadline in assessing whether rule amendments are needed. I look forward to reviewing this feedback.

High-Quality Accounting Standards

As we reassess the types of foreign issuers eligible for special arrangements, we must not overlook the cornerstone of effective regulatory systems: high-quality accounting standards and financial materiality.

In terms of accounting standards, US companies must prepare financial statements in accordance with US Generally Accepted Accounting Principles (U.S. GAAP). In 2007, during my tenure as an SEC commissioner, I voted in favor of a rule amendment allowing foreign companies to prepare financial statements directly using International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), without reconciliation to U.S. GAAP.

At the time, the SEC noted when removing the reconciliation requirement: "The sustainability, governance, and independent operation of the IASB were important considerations in our decision to remove the reconciliation requirement, as these factors relate to the IASB’s ability to continue developing high-quality, globally accepted standards." The SEC also specifically mentioned whether the International Accounting Standards Committee Foundation (IASC Foundation, predecessor to the IFRS Foundation) could obtain "stable funding" to support the IASB.

In 2021, the IFRS Foundation announced the establishment of the International Sustainability Standards Board (ISSB), with the Foundation’s trustees responsible for ensuring the financial security of both the IASB and ISSB. This expanded responsibility must not distract the Foundation from its long-term core mission—ensuring stable funding for the IASB. In turn, the IASB must focus on advancing high-quality financial accounting standards and ensuring the reliability of financial reporting, rather than being used as a "backdoor" for political or social agendas. Reliable financial reporting is critical for capital allocation decisions. We are all highly concerned about whether the IASB can obtain adequate and stable funding and maintain effective operations. I also urge the IFRS Foundation to fulfill its "stable funding" objective and prioritize the development of IASB financial accounting standards, rather than shifting to tangential or speculative topics.

If the IASB fails to obtain complete and stable funding, one of the premises for the SEC’s 2007 removal of the reconciliation requirement may no longer hold, and we may need to retrospectively review this decision.

Financial Materiality

In addition to high-quality accounting standards, regulation based on financial materiality is also a pillar for achieving efficient capital flows. "Financial materiality" means that disclosure requirements, corporate governance standards, and other regulatory measures should focus on the interests of investors. After all, it is investors who provide the capital needed to drive enterprise products, services, and employment. In contrast, a "double materiality" regulatory framework also considers other non-financial factors.

In the EU, two recently passed laws—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—have advanced the double materiality regulatory framework. These laws also affect US companies doing business in the EU.

I am concerned about the highly prescriptive nature of these laws and the burden they place on US companies, as these costs may ultimately be passed on to US investors and consumers. The recent EU commitment that these laws will not unduly restrict transatlantic trade, and efforts to streamline and simplify these laws, are encouraging. However, it remains necessary to further focus on the principle of financial materiality rather than double materiality. In fact, if Europe wants to promote capital market development by attracting more companies and investment, it should focus on reducing unnecessary reporting burdens for issuers, rather than pursuing goals unrelated to corporate economic success and shareholder welfare.

Project Crypto

As we call on partners to enhance investor confidence and promote market vitality in their jurisdictions, these same priorities drive us to unlock the potential of digital assets in the US.

As I mentioned earlier today, in the late 1980s, I worked at Place de la Concorde, about four kilometers from where we are meeting now. At that time, I could never have imagined that one day I would return here in my current capacity to discuss technologies that were once dismissed or even resisted, but are now revolutionizing global finance. Here, just steps from Avenue Victor Hugo, I cannot help but recall Victor Hugo’s famous words: "You can resist the invasion of armies, but not the invasion of ideas whose time has come."

Ladies and gentlemen, today we must acknowledge: the crypto era has arrived.

For a long time, the SEC weaponized investigations, subpoenas, and enforcement powers to stifle the crypto industry. This approach was not only ineffective but also harmful—it forced jobs, innovation, and capital to flow overseas. American entrepreneurs bore the brunt, compelled to spend large sums on legal defense rather than building their businesses. That chapter is now history.

Today, the SEC welcomes a new day. Policy will no longer be dictated by ad hoc enforcement actions. We will provide clear and predictable rules of the road to help innovators thrive in the US. President Trump has tasked me and colleagues in other government departments with building the US into the global crypto capital—and the President’s Digital Asset Markets Working Group has developed an ambitious blueprint to guide our efforts.

While Congress drafts comprehensive legislation, the Working Group has directed US regulators to act swiftly to modernize our outdated regulatory framework. The SEC is implementing this through "Project Crypto," a comprehensive reform initiative to update securities rules and regulations so our markets can migrate on-chain. Our priorities are clear:

· We must provide certainty regarding the securities status of crypto assets. The vast majority of crypto tokens are not securities, and we will draw clear boundaries.

· We must ensure that entrepreneurs can raise capital on-chain without facing endless legal uncertainty.

· We must allow "super-app" trading platforms to innovate, giving market participants more choices. These platforms should be able to offer trading, lending, and staking services under a single regulatory framework.

· Investors, advisors, and brokers should also have the right to freely choose among diverse custody solutions.

Meanwhile, according to the recent Working Group report, the SEC will work with other agencies to ensure that platforms can offer trading, staking, and lending services for crypto assets (whether or not they are securities) under a single regulatory framework. I believe regulation should provide the "minimum effective dose" of investor protection, and no more. We should not burden entrepreneurs with duplicative red tape, which only gives the largest incumbents an advantage. By unleashing competition in venues and products, we can help US companies compete fairly on the global stage.

As President Trump has said, America is a "nation of builders." During my tenure as Chairman, the SEC will encourage builders, not stifle them with bureaucracy. Our goal is simple: to ignite a golden age of financial innovation on American soil. Whether it’s tokenized stock ledgers or entirely new asset classes, we want these breakthroughs to be born in US markets, under US regulation, and ultimately benefit US investors.

Opportunities for Cooperation with International Partners

Of course, these goals can only be fully realized through strategic cooperation with international partners. Markets can only flourish when capital flows freely to its most productive uses. Public blockchains are inherently global and present a rare opportunity to modernize payments and capital market infrastructure. Through cooperation, the US and Europe can not only strengthen their own economies but also reinforce the transatlantic partnership.

It is commendable that Europe has taken the lead. As the Digital Asset Markets Report points out, the EU’s Markets in Crypto-Assets Regulation (MiCA) is a comprehensive digital asset regulatory framework. Some European policymakers have already called for "MiCA 2" to cover decentralized finance, non-fungible tokens (NFTs), and digital asset lending. I appreciate the foresight of our European allies in seeking regulatory clarity on their first attempt and believe the US must learn from and draw on this experience.

That said, I am determined to ensure that the US does not fall behind any country in creating an economic environment that supports financial innovation. As we catch up, I look forward to working with international partners to foster more innovative markets. As Alexis de Tocqueville said, we can "expand the sphere of liberty and prosperity."

Artificial Intelligence and Finance: A New Era of Market Innovation

For the US, our financial leadership depends on planning for the future, not fearing it. Just as blockchain is reshaping how assets are traded and settled, artificial intelligence (AI) is ushering in the era of "agentic finance"—a system in which autonomous AI agents can execute trades, allocate capital, and manage risk at speeds unmatched by humans, with securities compliance mechanisms embedded at the code level.

The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies that were once the preserve of large Wall Street institutions. By combining AI and blockchain, we can empower individuals, enhance competition, and unlock new prosperity.

In this regard, the government’s role is to ensure the establishment of common-sense safeguards while removing regulatory barriers that hinder innovation. AI has already entered the capital markets, and its role will only grow. We must resist the temptation to overreact out of fear. On-chain capital markets and agentic finance are about to emerge, and the world is watching. The choice before us is both simple and profound: either America moves forward with confidence and determination, or others will take the lead. I choose leadership, freedom, and growth—for our markets, our economy, and the next generation. And I also look forward to working with international partners to advance this goal and help build a more prosperous and free society.

Conclusion

In conclusion, with your cooperation, we can shape future regulatory initiatives to achieve their intended functions—protecting investors while providing ample space for innovators and entrepreneurs. As I said earlier, the SEC is entering a new day, realigning the institution’s longstanding principles with emerging opportunities. I believe that in the regulatory issues I discussed today, international cooperation will bring long-term benefits to all of us—both in the US and globally.

I look forward to working with all of you, with the determination that matches the opportunities before us, to engage in this important work.

Finally, thank you all for your time and attention. You have been patient and gracious listeners. I sincerely wish you a successful remainder of the roundtable meeting.

Thank you all, and have a pleasant afternoon.