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SEC chair tells appropriations panel he will return rulemaking to notice-and-comment, seeks to disband FinHub
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Summary
Newly reinstalled SEC Chairman Paul Atkins told a House appropriations subcommittee he will prioritize notice-and-comment rulemaking, pursue a ‘‘rational’’ crypto framework, and seek congressional approval to disband the agency's FinHub office and fold innovation work agency-wide.
Paul Atkins, chairman of the U.S. Securities and Exchange Commission, told a House appropriations subcommittee that restoring formal rulemaking procedures and clarifying regulatory authority are top priorities for his chairmanship.
Atkins said the SEC will return to ‘‘notice and comment rulemaking, not regulation by enforcement,’’ and will seek congressional approval to disband FinHub so innovation work is embedded across the agency rather than concentrated in a single office.
Atkins framed the change as a restoration of the SEC's statutory duties under the Securities Act and the Exchange Act and said the agency should weigh the costs and benefits of regulation to avoid creating needless friction for capital formation. "Policy making will be done through notice and comment rule making, not through regulation by enforcement," he said.
He told the panel the agency will undertake targeted reorganizations and a technology and contract review to modernize its infrastructure. "We've begun a process to review our technology infrastructure and our contractual obligations," Atkins said, adding the review is part of preparing the SEC to regulate new markets while protecting investors.
On crypto, Atkins said a key priority is "to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law." He emphasized that legal authority for action will come from the securities statutes and that the SEC will coordinate with Congress and other regulators.
Atkins also said the SEC will avoid artificially short comment periods and will consider how rules overlap across regulatory agencies when determining costs and benefits.
The chairman told lawmakers he would work with the administration and other financial regulators as part of the rulemaking process and said the FY2026 budget request and any reprogramming to dissolve FinHub would be presented to Congress through the usual budget process.
Looking ahead, Atkins said the SEC's work will include public roundtables and concept releases to solicit outside input before issuing proposed rules. He described the approach as intended to provide clearer guidance to market participants and reduce uncertainty that can chill capital formation.
