Senate Banking Committee Hears Four Trump Nominees on SEC, OCC, Treasury Financial Policy and Federal Transit

The Senate Banking, Housing, and Urban Affairs Committee on March 28 heard testimony from four presidential nominees overseeing financial markets and public transit: Paul Atkins for chairman of the Securities and Exchange Commission; Jonathan Gould for comptroller of the currency; Luke Pettit for assistant secretary of the Treasury for financial institutions; and Mark Molinaro for administrator of the Federal Transit Administration.

The hearing combined candidate statements and questioning on a range of issues: the 2008 financial crisis and incumbent regulators' record; bank supervision and the causes of the Silicon Valley Bank failure; “debanking” and the use of reputational risk in supervision; regulatory tailoring under the Economic Growth Act of 2018 (often cited as “2155”); policy toward digital assets and crypto firms; the SEC’s consolidated audit trail program (CAT) and the Public Company Accounting Oversight Board (PCAOB); private funds’ fees and disclosure; tariffs and their short-term effects; and staffing, grant disbursement, and safety at the Federal Transit Administration.

Paul Atkins, the SEC nominee, told the committee he would pursue the agency’s three-part statutory mission: “protecting investors, maintaining fair, orderly and efficient markets and facilitating capital formation,” and said he would prioritize clearer, more tailored regulations and cost-benefit analysis. During questioning, Senator Elizabeth Warren pressed Atkins on his record as an SEC commissioner from 2002 to 2008 and whether past deregulation contributed to the 2008 financial crisis. Atkins replied that the crisis had many causes and emphasized “misregulation” and failures outside the SEC as part of the problem. Warren also raised financial conflicts tied to Atkins’ private consulting firm, Potomac Global Partners; the senator said the firm is estimated at about $50,000,000 and pressed Atkins to commit to detailed divestiture disclosures; Atkins said he would abide by applicable ethics rules and has submitted materials for the record.

Jonathan Gould, nominated for comptroller of the currency, described his career in the OCC and his role implementing provisions of the Economic Growth Act of 2018. Senators asked Gould about recent OCC guidance changes removing “reputational risk” from examination guidance; Gould said he supports the acting comptroller’s steps and that discrimination against customers on the basis of politics, religion or lawful but politically disfavored activities is unacceptable. Gould and other witnesses were asked about the supervisory failures that contributed to the Silicon Valley Bank collapse; Gould called the failures managerial and supervisory and told senators regulators should reassess how on-site teams allocate resources.

Luke Pettit, nominated to coordinate Treasury’s engagement with bank regulators, fielded questions about tariffs and their short-term effects on consumer prices, the independence of bank regulators, and Treasury’s role in coordination. Pettit said tariffs can raise short-term prices on imported goods while aiming to incentivize reshoring in the longer term and committed to respecting regulator independence if confirmed.

Mark Molinaro, nominated to lead the Federal Transit Administration, emphasized accessibility, local solutions, and workforce partnerships during his opening remarks. Senators questioned Molinaro about recent contractor and grant pauses, reported probationary employee firings at the FTA during the administration’s staffing changes, and the disbursement of funds authorized under the Infrastructure Investment and Jobs Act. Molinaro said he would advocate for the disbursement of contracted and obligated awards and pledged to work with Congress and career staff to restore morale and oversight.

On digital assets and crypto access to banking, multiple senators pressed nominees about how regulators should treat crypto firms. Committee members discussed recent OCC actions rescinding interpretive guidance and legislation the committee advanced to restrict examiners’ use of reputational risk. Gould and other nominees said they would seek constructive paths for lawful digital asset activity to operate within the banking system while maintaining safety and soundness.

Several senators raised broader governance questions: the role and future of the PCAOB (the Holding Foreign Companies Accountable Act was cited as part of the oversight discussion), the SEC’s consolidated audit trail program and its security and cost concerns, and private-market disclosure for private equity and private credit offered to retail-adjacent investors. Senators asked for commitments to preserve enforcement independence and to prevent political interference in enforcement decisions; Atkins stated he does not support political influence in enforcement and pledged to work with Congress.

The committee ended the hearing with instructions for written follow-up questions: senators must submit questions for the record by noon March 28, and nominees have until March 31 to reply. No committee votes were recorded at the hearing.