The latest speech by the US SEC Chairman: The crypto era is coming in full swing, and the United States will lead crypto and AI innovation

# Editor's Note:  

At the first 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 facilitating capital formation. Meanwhile, he proposed re-evaluating the "accommodations" for foreign issuers and highlighted the importance of high-quality accounting standards and financial materiality. Atkins noted that the U.S. will promote the application of digital assets and artificial intelligence (AI) in financial markets under the framework of "Project Crypto," provide clearer regulatory rules, and call for strengthened cooperation with international partners to jointly shape an innovative, open, and prosperous future for capital markets. The following is the full translation of his speech:  

Ladies and gentlemen, good afternoon.  

First, I would like to thank Secretary-General Coleman for his kind introduction, and also thank Carmine for inviting me to this inaugural roundtable. It is a privilege to participate in such a timely dialogue on how we can work together to enhance global competition in capital markets while fostering economic growth in our respective jurisdictions. I know that everyone here is committed to these goals, and your presence today is a testament to that. I am particularly honored to be with you 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 facilitating capital formation.  

Before I proceed further, I must clarify: the views I express here today are my own and do not necessarily reflect the position of the SEC as an institution or that of my fellow Commissioners.  

Returning to France feels like "coming home" to me. In the late 1980s, as a young lawyer, I worked 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 gained a deep appreciation for the enduring value of cross-cultural cooperation. Over the decades since, my multiple tenures at the SEC have reinforced my understanding that the principles we cherish in the U.S.—such as the power of free enterprise and the vitality of capital markets—resonate strongly around the world. It is in this spirit that I warmly welcome today’s discussion on advancing growth and opportunity in our respective economies.  

## Special Accommodations for Foreign Issuers  

U.S.-EU cooperation has long fascinated me. I recall the period before the 1992 "Big Bang," which gave birth to the European Single Market and unlocked tremendous opportunities. For those of us involved at the time, it was inspiring to witness the emergence of a unified European internal market, driven by commerce and competition. Today, as Europe discusses the future of the Savings and Investment Union, these themes are back in focus. Yet even as European markets grow more integrated, cooperation beyond regional borders remains crucial. Sovereign nations like the U.S. must continue to engage constructively with the world to advance shared prosperity.  

At the SEC, these priorities are reflected in our efforts to attract foreign companies to U.S. markets—providing American investors with opportunities to invest in these firms, while ensuring a level playing field for both U.S. and foreign enterprises and safeguarding investor interests. Naturally, the size and depth of U.S. capital markets have long appealed to foreign companies, which stand to gain potential benefits including higher valuations, greater liquidity, access to U.S. capital, and enhanced prestige and visibility in global financial markets.  

Since the SEC’s founding, our rules have included special accommodations for foreign companies seeking access to U.S. capital markets. These accommodations recognize 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 always prioritized ensuring that U.S. investors receive sufficient information and understand the extent of disclosure required under the company’s home jurisdiction’s legal framework.  

In 1983, the SEC established the foundation for the current standards that determine which foreign companies qualify for these accommodations. Since then, the SEC has continuously re-evaluated and updated these standards in response to changes in global markets to better protect U.S. investors. One of my first actions as Chairman was to request that the Commission approve the release of a concept release to solicit public input on whether these standards should be updated to reflect the evolution of financial markets and corporate legal structures.  

This concept release seeks feedback on whether foreign companies listing in the U.S. should meet additional criteria—such as a minimum level of offshore trading volume or a requirement to list on a major foreign exchange—before qualifying for accommodations not available to U.S. companies.  

To be clear: the SEC welcomes foreign companies that seek to access U.S. capital markets. This concept release is not intended to deter or discourage these firms from listing on U.S. exchanges. Instead, our goal is to better understand how changes in the profile of foreign companies listing in the U.S. over the past two decades have impacted U.S. investors and markets. Notable changes include:  

- Shifts in the composition of foreign companies filing with the SEC;  

- A growing number of companies choosing to incorporate in jurisdictions (such as the Cayman Islands) that differ from their actual headquarters, operational locations, and governance frameworks—jurisdictions that are subject to governance regimes affecting shareholder interests.  

These developments have implications for shareholder rights. In light of these changes, we must ask: Does the original rationale for providing unconditional accommodations to all foreign companies still hold? Or should our rules be updated? Retrospectively evaluating existing rules to ensure they still meet their intended policy objectives is a key feature of an effective regulatory agenda.  

While the formal public comment period closed this past Monday, the SEC will, of course, still consider comments received after the deadline as we assess whether to propose rule amendments. I look forward to reviewing this feedback.  

## High-Quality Accounting Standards  

As we re-examine the types of foreign issuers that should qualify for accommodations, we cannot lose sight of a cornerstone of effective regulation: high-quality accounting standards and financial materiality.  

In terms of accounting standards, U.S. companies are required to prepare financial statements in accordance with 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 that allowed foreign companies to prepare financial statements using International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) without reconciling to U.S. GAAP.  

At the time, the SEC noted, in eliminating the reconciliation requirement, that "the sustainability, governance, and independence of the IASB were important considerations for us, as they relate to the IASB’s ability to continue developing high-quality, globally accepted standards." The SEC also specifically referenced the ability of the IASC Foundation (the predecessor to the IFRS Foundation) to secure "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 tasked with ensuring the financial security of both the IASB and the ISSB. This expanded mandate must not divert the Foundation from its longstanding core mission: safeguarding the stable funding of the IASB. In turn, the IASB must remain focused on advancing high-quality financial accounting standards and ensuring the reliability of financial reporting—not serving as a "backdoor" for advancing political or social agendas. Reliable financial reporting is critical to capital allocation decisions. We all have a strong interest in ensuring the IASB has sufficient, stable funding and remains effective. I also urge the IFRS Foundation to fulfill its "stable funding" objective and prioritize the IASB’s financial accounting standard-setting work over tangential or speculative issues.  

If the IASB fails to secure full, stable funding, one of the premises underlying the SEC’s 2007 decision to eliminate the reconciliation requirement may 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 of efficient capital flows. "Financial materiality" means that disclosure requirements, corporate governance standards, and other regulatory measures should focus on investor interests. After all, it is investors who provide the capital needed to drive corporate products, services, and jobs. By contrast, a "double materiality" regulatory framework also considers other non-financial factors.  

In the EU, two recently adopted pieces of legislation—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—have advanced the double materiality framework. These laws also impact U.S. companies operating in the EU.  

I am concerned about the highly prescriptive nature of these laws and the burden they impose on U.S. businesses—costs that may ultimately be passed on to U.S. investors and consumers. I am encouraged by recent EU commitments to ensure these laws do not impose undue restrictions on transatlantic trade and to streamline and simplify them. However, there remains a need to refocus on the principle of financial materiality rather than double materiality. Indeed, if Europe wishes to advance its capital markets by attracting more companies and investment, it should aim to reduce unnecessary reporting burdens on issuers—rather than pursuing goals unrelated to a company’s economic success and shareholder welfare.  

## Project Crypto  

As we call on partners to strengthen investor confidence and market dynamism in their jurisdictions, these same priorities are driving us to unlock the potential of digital assets in the U.S.  

As I mentioned earlier, in the late 1980s, I worked at Place de la Concorde—roughly four kilometers from where we meet today. At the time, I could never have imagined returning here in my current role to discuss new technologies that were once dismissed or even resisted but are now revolutionizing global finance. Standing here, just steps from Boulevard Victor Hugo, I am reminded of his famous words: "One can resist the invasion of armies, but one cannot resist the invasion of ideas whose time has come."  

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

For too long, the SEC weaponized its investigative, subpoena, and enforcement powers to stifle the crypto industry. This approach was not only ineffective but harmful—it drove jobs, innovation, and capital overseas. U.S. entrepreneurs bore the brunt, forced to spend significant resources on legal defense rather than building their businesses. That chapter is now history.  

Today, a new day has dawned at the SEC. Policy will no longer be dictated by ad hoc enforcement actions. We will provide clear, predictable rules of the road to help innovators thrive in the U.S. President Trump has tasked me and my colleagues across the administration with making the U.S. the global crypto capital—and the President’s Digital Asset Markets Task Force has developed an ambitious blueprint to guide our work.  

While Congress drafts comprehensive legislation, the Task Force has directed U.S. regulators to act swiftly to modernize our outdated rulebook. The SEC is executing this mandate through "Project Crypto"—a sweeping initiative to reform securities rules and regulations to enable our markets to migrate on-chain. Our priorities are clear:  

- We must provide certainty on the securities status of crypto assets. The vast majority of crypto tokens are not securities, and we will draw that line clearly.  

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

- We must allow "super-app" trading platforms to innovate and give 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 freedom to choose diverse custody solutions.  

Meanwhile, consistent with the recent Task Force report, the SEC will work with other agencies to ensure platforms can offer trading, staking, and lending services for crypto assets (whether securities or not) under a single regulatory framework. In my view, regulation should provide the "minimum effective dose" of oversight needed to protect investors—and no more. We should not burden entrepreneurs with duplicative red tape that only benefits the largest incumbents. By unlocking competition in venues and products, we can help U.S. companies compete fairly on the global stage.  

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

## Opportunities for Cooperation with International Partners  

Of course, these goals can be maximized when we collaborate strategically with international partners. Markets thrive only when capital flows freely to its most productive uses. Public blockchains are inherently global, offering a unique opportunity to modernize payment and capital market infrastructure. Through cooperation, the U.S. and EU can not only strengthen our respective economies but also reinforce the transatlantic partnership.  

To Europe’s credit, it has been an early leader. As noted in the *Digital Asset Markets Report*, the EU’s Markets in Crypto-Assets Regulation (MiCA) is a comprehensive framework for regulating digital assets. Some European policymakers have already called for a "MiCA 2" to cover decentralized finance (DeFi), non-fungible tokens (NFTs), and digital asset lending. I commend our European allies for their vision in attempting regulatory clarity for the first time—and believe the U.S. must learn from their experience.  

That said, I am determined to ensure the U.S. does not cede ground to any nation in creating an economic environment that supports 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 have the ability to "expand the scope of freedom and prosperity."  

## Artificial Intelligence and Finance: A New Era of Market Innovation  

For the U.S., 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 an era of "agentic finance"—a system where autonomous AI agents execute trades, allocate capital, and manage risk at speeds unmatched by humans, with securities compliance embedded directly in code.  

The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies once reserved for large Wall Street institutions. 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 are in place while removing regulatory barriers to innovation. AI is already in our 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 the U.S. moves forward with confidence and resolve, or others will take our place. 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 goal, toward building a more prosperous and free society.  

## Conclusion  

In summary, with your cooperation, we can shape future regulatory initiatives to fulfill their intended purpose—protecting investors while giving innovators and entrepreneurs room to thrive. As I noted earlier, a new day has dawned at the SEC, and we are realigning the agency’s longstanding principles with emerging opportunities. I believe that in the regulatory issues I have discussed today, international cooperation will deliver long-term benefits for all of us—here in the U.S. and around the globe.  

I look forward to working with each of you on this effort, with a resolve that matches the scale of the opportunities before us.  

Finally, thank you for your time and attention. You have been a patient and generous audience. I wish you all a productive remainder of the roundtable.  

Thank you, and have a pleasant afternoon.  

### Disclaimer  

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