Senate approves SEC Chair Paul Atkins: What to expect

Related ��è��Ƶ: Client Accounting and Advisory ��è��Ƶ, Consulting

April 29, 2025

Contributors: Thomson Reuters

On April 21, 2025, Paul Atkins was sworn in as Chair of the U.S. Securities and Exchange Commission (SEC). Before Atkins’s confirmation, the SEC’s leadership transitioned from Chair Gary Gensler, who resigned when President Trump took office on January 20, 2025, to Acting Chair Mark T. Uyeda.

Here are insights into the new chairperson’s background and how SEC oversight and enforcement priorities might change under his leadership.

Who is Paul Atkins?

Atkins brings decades of regulatory and financial experience to his role as SEC Chair. He previously served as an SEC commissioner from 2002 to 2008. During his tenure, Atkins was known for promoting investor protections, efficient capital markets and transparent financial reporting. He has a track record of advocating for pro-market reforms and cost-benefit analysis in rulemaking.

Before his current appointment, Atkins founded Patomak Global Partners, a financial services consulting firm that advises companies on risk management, compliance and regulatory strategy. His experience spans the public and private sectors, including prior roles at the SEC during the 1990s and senior positions at financial institutions.

What are Atkins’s priorities?

It’s critical for business owners and managers to understand the SEC’s approach to enforcement, disclosure requirements and the overall regulatory landscape. Atkins outlined the following five priorities during his recent confirmation hearing before the Senate Banking Committee:

Digital asset regulation. Atkins openly criticized the SEC’s patchwork of enforcement actions and ambiguous guidance, stating the markets need “a rational, coherent, and principled framework for digital assets — one that fosters innovation while protecting investors.” He signaled a willingness to work collaboratively with the U.S. Department of the Treasury and other agencies to provide businesses and investors with clarity. Under Atkins’s leadership, the SEC will likely issue updated interpretive guidance and propose formal rulemaking to clarify how digital assets are classified and regulated.
Regulatory rollback. Atkins has been an outspoken critic of what he calls “overly politicized and complicated” regulations that, in his view, hinder capital formation. Under his leadership, the SEC may reevaluate several disclosure requirements implemented during the previous administration, including those on environmental, social and governance (ESG) matters. Many business owners welcome streamlined reporting obligations, especially private companies considering public offerings. Atkins is expected to prioritize rule amendments that make going public more attractive, including revisiting aspects of Regulation S-K, proxy rules and ESG disclosures.
Capital formation and market access. Atkins wants to foster entrepreneurship and investment by making it easier for companies to raise capital. His agenda includes expanding exemptions under Regulation D, enhancing the utility of Regulation A+, and rethinking limits around private placements and accredited investor definitions. These efforts could benefit middle-market companies and startups seeking alternative fundraising sources.
Predictable enforcement. Under Atkins, the SEC’s enforcement division is expected to shift what he’s described as “regulation by enforcement,” particularly related to digital assets and ESG disclosures. Instead, he advocates for “fair treatment for all market participants,” signaling a preference for guidance and rulemaking over punitive actions. While violations of core securities laws will still be pursued, companies may benefit from a more measured regulatory environment that allows for remediation and dialogue, particularly when issues arise in new or evolving areas.
Political neutrality in rulemaking. Atkins has said that political agendas shouldn’t interfere with the SEC’s core mission: protecting investors, maintaining fair markets and facilitating capital formation. (See “What’s the SEC’s role” below.) He testified that the SEC needs to “remove politics from financial regulation and focus on what truly matters to investors — performance, transparency and integrity.” Business leaders are hoping for a more economically focused framework under Atkins’s leadership, where decisions are evaluated based on investor relevance and cost-benefit impact rather than broader policy aims.

Wait and see

Atkins’s confirmation hearing statements suggest he intends to overhaul the SEC’s regulatory approach. But SEC policy shifts are generally gradual, not immediate, even under a reform-minded chair. SEC procedural rules, existing court precedents and future court challenges may constrain potential reforms.

Currently, all three sitting SEC commissioners — Chair Paul Atkins, Hester Peirce and Mark Uyeda — are Republicans. The remaining two seats are vacant. By law, no more than three commissioners may belong to the same political party. Trump is expected to nominate two Democratic commissioners to help restore political balance. Contact your CPA to stay on top of the latest SEC developments.

Sidebar: What’s the SEC’s role?

The Securities and Exchange Commission (SEC) acts as a gatekeeper of financial transparency in the U.S. capital markets. Its primary goals are to protect investors, maintain fair and orderly markets, and facilitate capital formation. However, the SEC also shapes how financial information is reported and audited. Congress has given the SEC authority to perform the following key tasks:

Oversight of financial reporting standards. The SEC doesn’t write U.S. Generally Accepted Accounting Principles (GAAP). Instead, it recognizes the Financial Accounting Standards Board as the official standard-setter. The SEC influences accounting rules through comment letters, speeches, staff guidance and enforcement. CPAs pay close attention to SEC staff interpretations of GAAP. For example, in recent years, the Office of the Chief Accountant has clarified gray areas in revenue recognition, lease accounting and fair value measurement.

Enforcement of financial disclosure rules. The SEC enforces compliance with securities laws that require companies to file periodic reports. These filings must present financial statements that are accurate, complete and audited by independent CPAs. If a company’s disclosures are misleading or materially misstated, the SEC can take enforcement actions, including restatements, penalties, or even barring individuals from serving as officers or directors. SEC enforcement compels public companies and auditors to maintain rigorous internal controls and ensure that disclosures are technically correct, transparent and relevant to investors.

Auditor oversight. The SEC directly supervises the Public Company Accounting Oversight Board (PCAOB). The PCAOB inspects audit firms and enforces audit standards for evidence, risk assessment and internal control evaluation. If deficiencies are found during inspections, the SEC may become involved in disciplinary action.

Ultimately, the SEC’s role is to instill confidence in financial markets. Investors and other stakeholders depend on credible financial statements to make informed decisions.