SEC Chairman Paul Atkins: The crypto era has fully arrived, and America will ignite a golden age of financial innovation
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SEC Chairman Paul Atkins: The crypto era has fully arrived, and America will ignite a golden age of financial innovation
"Whether it's tokenized stock ledgers or entirely new asset classes, we want these breakthroughs to emerge in the U.S. market, under U.S. regulation, and ultimately benefit U.S. investors."
Navigating Web3 tides with focused insightsAuthor: Paul S. Atkins
Translation: Jonnah, MetaEra
Introduction: At the inaugural OECD Global Financial Markets Roundtable, Paul S. Atkins, Chairman of the U.S. 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—while also calling for a reassessment of accommodations for foreign issuers and highlighting the importance of high-quality accounting standards and financial materiality. Atkins noted that the United States will advance applications of digital assets and artificial intelligence in financial markets under the "Project Crypto" framework, provide clearer regulatory rules, and call for strengthened cooperation with international partners to jointly shape the future of innovative, open, and prosperous capital markets.
Below is the full translation of the speech.
Ladies and gentlemen, good afternoon.
First, I want to thank Secretary-General Coleman for his kind introduction and Carmine for the invitation to participate in this inaugural roundtable, which has organized such a timely dialogue on how we can work together to advance global competitiveness in capital markets while fostering economic growth within our respective jurisdictions. I know you are all committed to these goals—the fact that you are here today is proof enough. It is an honor to be with you, especially at a time when the U.S. Securities and Exchange Commission (SEC) is refocusing 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 here today are 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. During that time, I not only learned about the complexities of international finance but also deeply appreciated the enduring value of cross-cultural collaboration. Over the decades since, through multiple stints at the SEC, I’ve come to understand more profoundly that the principles we cherish in America—such as the power of free enterprise and the dynamism of capital markets—resonate just as strongly overseas. It is in this spirit that I welcome today’s discussion on how we can promote growth and opportunity within our respective economies.
Special Accommodations for Foreign Issuers
U.S.-European cooperation has long fascinated me. I remember the period before the 1992 “Big Bang,” which gave rise to the European single market and brought with it tremendous opportunities. For us who were there at the time, it was exhilarating to witness the gradual emergence of Europe’s internal market driven by business and competition. Today, as Europe discusses the direction of the Savings and Investment Union, these themes are once again central. Meanwhile, even as European markets grow closer, cooperation beyond the region remains vital. Sovereign nations like the United States must continue to engage constructively with the world to promote shared prosperity.
At the SEC, these priorities are reflected in our efforts to attract foreign companies into U.S. markets and offer American investors opportunities to invest in them, while ensuring a level playing field between domestic and foreign firms and safeguarding investor interests. Of course, the size and depth of U.S. capital markets have always been attractive to foreign companies. These firms can gain various potential benefits, including higher valuations, greater liquidity, access to U.S. capital, and enhanced reputation and visibility in financial markets.
Since its founding, the SEC’s rules have provided special accommodations for foreign companies accessing U.S. capital markets. These arrangements acknowledge differences between U.S. and foreign firms in areas such as business and market practices, accounting standards, and corporate governance requirements. At the same time, the SEC has consistently emphasized ensuring that U.S. investors receive adequate information and understand the extent to which such information is disclosed under the legal frameworks of the companies’ home jurisdictions.
In 1983, the SEC established the current standard for determining which foreign companies qualify for these accommodations. Since then, the SEC has continuously reevaluated and updated this standard in response to changes in global markets to better protect U.S. investors. One of my first actions as Chair was to request that the Commission approve the release of a concept release seeking public input on whether this standard should be updated in light of evolving financial markets and corporate legal structures.
This release sought public comment on whether additional conditions—such as minimum foreign trading volume or listing on a major foreign exchange—should be required for foreign companies to receive accommodations not available to U.S. firms.
To be clear, the SEC welcomes foreign companies seeking access to U.S. capital markets. This initiative does not signal any intent by the SEC to target or discourage such firms from listing on U.S. exchanges. On the contrary, our goal is to better understand how changes over the past two decades in foreign listings have affected U.S. investors and markets. Notable developments include:
· A shift in the composition of foreign registrants with the SEC;
· An increasing number of companies choosing to incorporate in jurisdictions such as the Cayman Islands—distinct from their actual headquarters, operations, and governance frameworks—subject to governance regimes that affect shareholder interests.
These developments impact shareholder interests. Given these changes, is the original rationale for providing unconditional accommodations to all foreign companies still valid? Or should the rules be updated? Conducting retrospective assessments of existing rules to ensure they continue to achieve their intended policy objectives is a hallmark of effective regulatory stewardship.
While the formal public comment period ended this past Monday, the SEC will of course continue to consider submissions received after the deadline in evaluating whether rule amendments may be necessary. I look forward to reviewing this feedback.
High-Quality Accounting Standards
As we reconsider the types of foreign issuers eligible for accommodations, we must not overlook another cornerstone of an effective regulatory system: high-quality accounting standards and financial materiality.
On accounting standards, U.S. companies must prepare financial statements under U.S. Generally Accepted Accounting Principles (U.S. GAAP). During my tenure as an SEC commissioner in 2007, I voted in favor of a rule amendment allowing foreign companies to file financial statements prepared directly under International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), without reconciliation to U.S. GAAP.
At the time, the SEC stated that “the sustainability, governance, and independence of the IASB were key considerations” in eliminating the reconciliation requirement, as these factors relate to the IASB’s ability to consistently develop high-quality, globally accepted standards. The SEC also specifically mentioned the need for the International Accounting Standards Committee Foundation (IASC Foundation, predecessor to the IFRS Foundation) to secure “stable funding” to support the IASB.
In 2021, the IFRS Foundation announced the creation of the International Sustainability Standards Board (ISSB), with Foundation trustees responsible for securing funding for both the IASB and ISSB. This expanded responsibility must not divert the Foundation from its long-standing core mission—ensuring stable funding for the IASB. In turn, the IASB must remain focused on advancing high-quality financial accounting standards and ensuring reliable financial reporting, rather than becoming a backdoor for political or social agendas. Reliable financial reporting is essential for capital allocation decisions. We all have a strong interest in ensuring the IASB receives sufficient and stable funding and continues to operate effectively. I urge the IFRS Foundation to fulfill its commitment to “stable funding” and prioritize the IASB’s role in setting financial accounting standards over speculative or tangential issues.
If the IASB fails to secure complete and stable funding, one of the foundational assumptions behind the SEC’s 2007 decision to eliminate reconciliation could no longer hold, and we may need to conduct a retrospective review of that decision.
Financial Materiality
Beyond high-quality accounting standards, regulation based on financial materiality is another pillar enabling efficient capital flows. “Financial materiality” means disclosure requirements, corporate governance standards, and other regulatory measures should focus on what matters to investors. After all, it is investors who provide the capital that drives products, services, and employment. In contrast, a “double materiality” regulatory framework considers non-financial factors alongside financial ones.
In the European Union, two recently adopted laws—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—have advanced the double materiality framework. These laws also affect U.S. companies operating in the EU.
I am concerned about the prescriptive nature of these laws and the burden they place on U.S. businesses, costs that may ultimately be passed on to U.S. investors and consumers. Recent commitments by the EU to ensure these laws do not unduly restrict transatlantic trade and to streamline and simplify them are encouraging. Still, greater emphasis should be placed on financial materiality rather than double materiality. Indeed, if Europe seeks to grow its capital markets by attracting more businesses and investment, it should focus on reducing unnecessary reporting burdens on issuers—not pursue objectives unrelated to corporate economic success and shareholder welfare.
Project Crypto
As we call on partners to strengthen investor confidence and market vitality within their jurisdictions, the same priorities drive us in the United States to unlock the potential of digital assets.
As I mentioned earlier today, in the late 1980s I worked at Place de la Concorde, roughly four kilometers from where we meet now. I never imagined then that I would one day return in this capacity to speak about technologies once dismissed or resisted but now revolutionizing global finance. Here, just steps away from Avenue Victor-Hugo, I am reminded of Victor Hugo’s famous words: “An army can be invaded, but not an idea whose time has come.”
Ladies and gentlemen, today we must acknowledge: the era of crypto has arrived.
For too long, the SEC has weaponized investigations, subpoenas, and enforcement power to stifle the crypto industry. This approach has not only failed—it has caused harm, driving jobs, innovation, and capital offshore. American entrepreneurs bore the brunt, forced to spend vast sums on legal defense instead of building businesses. That chapter is now closed.
Today marks a new day at the SEC. Policy will no longer be dictated by ad hoc enforcement actions. We will provide clear, predictable roadmaps to help innovators thrive in the United States. President Trump has tasked me and colleagues across the government with making America the global capital of crypto—and the Presidential Working Group on Digital Asset Markets has laid out an ambitious blueprint to guide our efforts.
While Congress drafts comprehensive legislation, the Working Group has directed U.S. regulators to act swiftly to modernize our outdated rulebooks. The SEC is implementing this mandate through “Project Crypto”—a comprehensive reform of securities rules aimed at updating regulations so our markets can migrate on-chain. Our priorities are clear:
· We must bring certainty to the securities status of crypto assets. The vast majority of crypto tokens are not securities, and we will draw clear boundaries.
· We must ensure entrepreneurs can raise capital on-chain without endless legal uncertainty.
· We must allow “super-app” style 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 have the freedom to choose diverse custody solutions.
At the same time, consistent with the recent Working Group report, the SEC will collaborate with other agencies to ensure platforms can offer trading, staking, and lending of crypto assets—whether or not they are securities—under a unified regulatory framework. I believe regulation should provide the “minimum effective dose” necessary to protect investors—and no more. We should not burden entrepreneurs with redundant red tape that only advantages the largest incumbents. By unleashing venue and product competition, we can help American firms compete fairly on the global stage.
As President Trump said, America is a “nation of builders.” During my tenure as Chair, the SEC will encourage builders, not strangle them with bureaucracy. Our goal is simple: ignite a golden age of financial innovation on American soil. Whether tokenized stock ledgers or entirely new asset classes, we want these breakthroughs born in U.S. markets, under U.S. regulation, and ultimately benefiting U.S. investors.
Opportunities for Cooperation with International Partners
Of course, these goals are best achieved through strategic collaboration with international partners. Markets flourish only when capital flows freely to its most productive uses. Public blockchains are inherently global and offer rare opportunities to modernize payment and capital market infrastructure. Through cooperation, the U.S. and Europe can not only strengthen their own economies but also reinforce the transatlantic partnership.
Credit is due: Europe moved early. As the Digital Assets Market Report notes, the EU’s Markets in Crypto-Assets Regulation (MiCA) is a comprehensive regulatory framework for digital assets. Some European policymakers are already calling for a “MiCA 2” to cover decentralized finance, non-fungible tokens (NFTs), and digital asset lending. I commend our European allies for their foresight in pursuing regulatory clarity on a first-mover basis and believe the United States must learn from and build upon their experience.
That said, I am determined that the United States will not fall behind any nation in creating an economic environment supportive of financial innovation. As we catch up, I look forward to collaborating with international partners to foster more innovative markets. As Alexis de Tocqueville observed, we can “extend the sphere of liberty and prosperity.”
Artificial Intelligence and Finance: A New Era of Market Innovation
For the United States, our leadership in finance 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”—where autonomous AI agents execute trades, allocate capital, and manage risk at speeds far beyond human capability, with securities compliance embedded directly in code.
The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies once limited to Wall Street giants. By combining AI with blockchain, we can empower individuals, strengthen competition, and unlock new prosperity.
In this area, the government’s role is to ensure common-sense safeguards while removing regulatory barriers that hinder innovation. AI is already in 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 coming, and the world is watching. The choice before us is simple yet profound: either America moves forward with confidence and determination, or someone else will. I choose leadership, freedom, and growth—for our markets, our economy, and the next generation. And I am eager to work with international partners to advance this vision and build a freer, more prosperous society.
Conclusion
In sum, with your cooperation, we can shape future regulatory initiatives to fulfill their intended purpose—protecting investors while creating ample space for innovators and entrepreneurs. As I noted earlier, a new day has dawned at the SEC, and we are realigning this institution’s enduring principles with emerging opportunities. I believe that international cooperation on the regulatory issues I’ve discussed today will yield lasting benefits for all of us—both in the United States and around the world.
I look forward to working with you, with resolve commensurate to the opportunities before us.
Finally, thank you for your time and attention. You have been patient and gracious listeners. I wish you all continued success for the remainder of this roundtable.
Thank you, and have a pleasant afternoon.
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