Paul Atkins, Chairman of the U.S. SEC, discusses IPOs and Crypto Assets regulation.

Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), spoke in an interview with CNBC at the New York Stock Exchange about the upcoming 250th anniversary of the founding of the United States next year. He pointed out that freedom and the Capital Market are two inseparable main threads in American history, and the maturity of the financial system is an important engine for the rise of U.S. national power. He specifically mentioned that the SEC will accelerate the passage of new IPO regulations and the encryption regulatory framework. The following is a summary of the key points from the interview.

Atkins: The Declaration of Independence represents freedom and investment culture in the United States.

Atkins stated that the freedom, individual rights, and property security embodied in the Declaration of Independence are the core values of the American system, while the Capital Market has become a source of power for innovation and prosperity. He reflected on how America, even before its founding, could be seen as an “investment,” as early British investors took risks to establish colonies in North America, ultimately giving rise to the nation we have today. He emphasized that the continuation of the spirit of adventure and investment culture has placed the United States in a leading position globally in fields such as technology, aviation, and space exploration.

The rise of socialist ideas? The chairman calls for a return to the facts themselves.

In response to the host's mention of the younger generation's skepticism towards capitalism and tendency towards socialism, Atkins believes that rather than worrying about ideology, it is more important to help the next generation understand the trajectory of America's success. He stated that over the past 250 years, the United States has made significant progress in freedom and prosperity; while the system is not perfect, the investment mechanism has driven the overall economy upwards, which is an achievement that cannot be ignored.

Make IPO great again

Atkins revealed that the number of publicly traded companies in the U.S. is currently only half of what it was 30 years ago. He believes that outdated Capital Market rules, high litigation risks, and the abuse of the shareholder proposal system are significant factors hindering companies from going public. He announced that the SEC has initiated reforms that will address three areas to make U.S. IPOs great again.

Update the rules manual to make it easier for small and medium-sized enterprises as well as large enterprises to obtain funding.

Examine the litigation environment to reduce unnecessary lawsuits that hinder companies from going public.

Reform corporate governance and shareholder proposal systems to avoid manipulation by special interest groups.

Is the line between investment and gambling blurred? Chairman: Risk-bearing is inherently a continuum.

In recent years, the U.S. market has seen the rise of one-day expiration options, prediction markets, and highly speculative trading, leading to external criticism that it blurs the line between investment and gambling. Atkins responded that investment and risk are essentially a continuous spectrum, with different people having varying abilities and preferences for risk. He stated that the reason the U.S. capital market attracts the world is because of its depth, liquidity, and culture of risk-taking, which Europe and Japan both envy greatly. He emphasized that the U.S. must maintain this investment culture to support entrepreneurship and innovative development.

SEC will play people for suckers.

When discussing voting issues related to proxy advisors and ESG, DEI, and prediction markets, Atkins pointed out that the current system is like barnacles on the hull, resembling the way barnacles cling to the ship's body, hindering the speed of large ships. The SEC is planning to clean up these impurities and update relevant regulations to allow companies to operate in a more efficient governance environment.

Crypto Assets Regulation: Expecting to Promote Innovation Within a Year

Regarding the external concern over Crypto Assets regulation, Atkins stated that the SEC is working with Congress to provide technical advice to ensure that legislation is compatible with the existing legal system. He emphasized that the SEC already has sufficient authority to promote reforms and is currently preparing to launch an “innovation exemption” framework, which is expected to be announced in about a month. He pointed out that the government shutdown had previously affected progress, but the SEC will continue to push for relevant rules to ensure that the United States is no longer sidelined in the field of encryption technology.

The Rise of the Private Market: A Dual Effect That Needs Positive Review

In the face of the rapid expansion of private equity and companies' tendency to stay in the private market, Atkins believes that this reflects an increase in market liquidity and the ease of obtaining capital, but it also requires reflection on the structural reasons for the decrease in listed companies. He reiterated that the goal of the SEC's reforms is to reduce obstacles, enhance efficiency, and attract more companies back to the public market.

This article discusses IPOs and cryptocurrency regulation by Paul Atkins, Chairman of the SEC, and first appeared in Chain News ABMedia.