Latest Speech by US SEC Chairman: The Era of Crypto Has Fully Arrived, and the US Will Lead Crypto and AI Innovation

Original Title: Keynote Address at the Inaugural OECD Roundtable on Global Financial Markets

Source: SEC

Compiled and Translated by: Jonnah, MetaEra

Editor's Note: At the inaugural OECD Roundtable on Global Financial Markets, SEC Chairman Paul S. Atkins delivered a keynote speech. He emphasized that the SEC will return to its core mission—protecting investors, maintaining fair and efficient markets, and promoting capital formation. He also called for a reassessment of special arrangements for foreign issuers, the importance of high-quality accounting standards, and financial materiality. Atkins pointed out that the U.S. will promote the application of digital assets and artificial intelligence in financial markets under the "Project Crypto" framework, provide clearer regulatory rules, and called for strengthened cooperation with international partners to jointly shape an innovative, open, and prosperous future for capital markets. The following is the full translated text of the speech:

Ladies and gentlemen, good afternoon.

First, I would like to thank Secretary-General Coleman for the warm introduction, and also Carmine for the invitation, giving me the opportunity to participate in this inaugural roundtable and organize such a timely dialogue to discuss how we can work together to promote global competition in capital markets while fostering economic growth in our respective jurisdictions. I know everyone present is committed to these goals, and your attendance today is the best proof of that. It is a great honor to be here with you, especially as the U.S. Securities and Exchange Commission (SEC) refocuses on our core mission: protecting investors; maintaining fair, orderly, and efficient markets; and promoting capital formation.

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

For me, returning to France feels like coming home. In the late 1980s, I was a young lawyer working in the Paris office of a New York law firm. At that time, I not only learned about the complexities of international finance but also experienced the enduring value of cross-cultural cooperation. Over the following decades, my multiple tenures at the SEC deepened my understanding that the principles we cherish in the United States—such as the power of free enterprise and the vitality of capital markets—resonate abroad as well. In this spirit, I warmly welcome today's discussion on how to promote growth and opportunity in our respective economies.

Special Arrangements for Foreign Issuers

For many years, I have been fascinated by U.S.-European cooperation. I recall the period before the "Big Bang" of 1992, which gave rise to the European Single Market and the tremendous opportunities that followed. For those of us who witnessed it, seeing the European internal market gradually take shape under the forces of commerce and competition was exhilarating. As Europe now discusses the direction of the Savings and Investment Union, these themes are once again in the spotlight. Meanwhile, even as European markets become increasingly integrated, cooperation beyond the region remains crucial. Sovereign nations like the United States must continue to engage constructively with the world to promote shared prosperity.

At the SEC, these priorities are reflected in our efforts to attract foreign companies to the U.S. market and provide American investors with opportunities to invest in these companies, while ensuring that foreign enterprises have a level playing field and that investors' interests are protected. Of course, the size and depth of U.S. capital markets have always attracted foreign companies. These companies can access multiple potential benefits, including higher valuations, greater liquidity, access to U.S. capital, and enhanced reputation and visibility in financial markets.

Since the SEC's inception, our rules have provided special arrangements for foreign companies entering U.S. capital markets. These arrangements recognize the differences between U.S. and foreign companies in business and market practices, accounting standards, and corporate governance requirements. At the same time, the SEC has always valued and ensured that U.S. investors have access to sufficient information and understand the extent of disclosure under the company's home country legal framework.

In 1983, the SEC established the current standard for determining which foreign companies can enjoy these arrangements. Since then, the SEC has continually reassessed and updated this standard in response to changes in global markets to better protect U.S. investors. One of my first actions as Chairman was to require the Commission to approve the release of a concept release seeking public comment to determine whether the standard should be updated in light of evolving financial markets and corporate legal structures.

This release seeks public comment on whether foreign companies listing in the U.S. should meet additional conditions—such as a minimum level of offshore trading or being listed on a major foreign exchange—before being granted accommodations unavailable to U.S. companies.

To be clear, the SEC welcomes foreign companies seeking to enter U.S. capital markets. This release does not signal any intent by the SEC to discourage or deter these enterprises from listing on U.S. exchanges. On the contrary, our goal is to better understand the changes brought about by foreign companies listing in the U.S. over the past two decades and their impact on U.S. investors and markets. Notable changes include:

· The composition of foreign companies filing with the SEC has changed;

· An increasing number of companies are choosing to register in jurisdictions such as the Cayman Islands, which differ from their actual headquarters, operational locations, and governance frameworks, and are subject to governance frameworks affecting shareholder interests.

These situations affect shareholder interests. In the face of these changes, does the original rationale for granting unconditional accommodations to all foreign companies still hold? Or should the rules be updated? Retrospective review of existing rules to ensure they continue to achieve their intended policy objectives is a key feature of an effective regulatory agenda.

Although the formal public comment period ended this Monday, the SEC will, of course, still consider comments received after the deadline in evaluating whether rule amendments are needed. I look forward to reviewing this feedback.

High-Quality Accounting Standards

As we re-examine the types of foreign issuers eligible for accommodations, we must not overlook the cornerstone of effective regulatory systems: high-quality accounting standards and financial materiality.

In terms of accounting standards, U.S. companies must prepare financial statements in accordance with U.S. GAAP. In 2007, during my tenure as an SEC Commissioner, I voted in favor of a rule amendment allowing foreign companies to prepare financial statements directly using International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), without reconciliation to U.S. GAAP.

At that time, the SEC noted when removing the reconciliation requirement: "The sustainability, governance, and independent operation of the IASB were important considerations in our decision to eliminate the reconciliation requirement, as these factors relate to the IASB's ability to continue developing high-quality, globally accepted standards." The SEC also specifically mentioned whether the International Accounting Standards Committee Foundation (IASC Foundation, predecessor of the IFRS Foundation) could obtain "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 responsible for ensuring the funding security of both the IASB and ISSB. This expanded responsibility must not distract the Foundation from its long-term core mission—ensuring stable funding for the IASB. In turn, the IASB must focus on advancing high-quality financial accounting standards and ensuring the reliability of financial reporting, rather than being used as a "back door" for political or social agendas. Reliable financial reporting is essential for capital allocation decisions. We are all deeply concerned about whether the IASB can obtain sufficient and stable funding and maintain effective operations. I also urge the IFRS Foundation to fulfill its goal of "stable funding," making the development of IASB's financial accounting standards its top priority, rather than shifting to tangential or speculative topics.

If the IASB fails to secure complete and stable funding, one of the premises for the SEC's 2007 decision to eliminate the reconciliation requirement may no longer hold, and we may need to retrospectively review that decision.

Financial Materiality

In addition to high-quality accounting standards, regulation based on financial materiality is also a pillar for achieving efficient capital flows. "Financial materiality" means that disclosure requirements, corporate governance standards, and other regulatory measures should focus on the interests of investors. After all, it is investors who provide the capital needed to drive enterprise products, services, and employment. In contrast, a "double materiality" regulatory framework considers other non-financial factors as well.

In the European Union, two recently adopted laws—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—have advanced the double materiality regulatory framework. These laws also affect 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, as these costs may ultimately be passed on to U.S. investors and consumers. The EU has recently pledged that these laws will not unduly restrict transatlantic trade and is working to streamline and simplify them. This is encouraging, but it remains necessary to focus further on the principle of financial materiality rather than double materiality. In fact, if Europe wishes to develop its capital markets by attracting more enterprises and investment, it should focus on reducing unnecessary reporting burdens for issuers, rather than pursuing goals unrelated to corporate economic success and shareholder welfare.

Project Crypto

As we call on our partners to enhance investor confidence and promote market vitality in their jurisdictions, the same priorities drive us in the U.S. to unlock the potential of digital assets.

As I mentioned earlier today, in the late 1980s, I worked at Place de la Concorde, about four kilometers from where we are meeting now. At that time, I could never have imagined that one day I would return here in my current capacity to discuss technologies that were once dismissed or resisted but are now revolutionizing global finance. Here, just steps from Avenue Victor Hugo, I am reminded of Victor Hugo's famous words: "One can resist the invasion of armies; one cannot resist the invasion of ideas whose time has come."

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

For a long time, the SEC weaponized investigations, subpoenas, and enforcement powers to stifle the crypto industry. This approach was not only ineffective but also harmful—it forced jobs, innovation, and capital to flow overseas. American entrepreneurs, in particular, were forced to spend large sums on legal defense instead of building their businesses. That chapter is now history.

Today, a new day has dawned at the SEC. Policy will no longer be determined by ad hoc enforcement actions. We will provide clear and predictable rules of the road to help innovators thrive in the United States. President Trump has tasked me and colleagues in other government departments with building the U.S. into the global crypto capital—and the President’s Digital Asset Markets Working Group has developed an ambitious blueprint to guide our efforts.

While Congress drafts comprehensive legislation, the Working Group has directed U.S. regulators to act quickly to modernize our outdated regulatory framework. The SEC is implementing this mandate through "Project Crypto," a comprehensive reform of securities rules aimed at updating regulations so our markets can migrate on-chain. Our priorities are clear:

· We must provide certainty regarding the securities status of crypto assets. The vast majority of crypto tokens are not securities, and we will draw clear boundaries.

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

· We must allow "super-app" trading platforms to innovate, giving market participants more choices. These platforms should be able to offer trading, lending, and staking services under a single regulatory framework.

· Investors, advisers, and brokers should also have the right to freely choose among diverse custody solutions.

Meanwhile, according to the recent Working Group report, the SEC will cooperate with other agencies to ensure that platforms can offer trading, staking, and lending of crypto assets (whether or not they are securities) under a single regulatory framework. I believe regulation should provide the "minimum effective dose" of investor protection—and no more. We should not burden entrepreneurs with duplicative red tape, which only gives the largest incumbents an advantage. By unleashing competition in venues and products, we can help U.S. companies compete fairly on the global stage.

As President Trump has said, America is a "nation of builders." During my tenure as Chairman, the SEC will encourage builders, not stifle them with bureaucracy. Our goal is simple: to ignite a golden age of financial innovation on American soil. Whether it’s 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 American investors.

Opportunities for Cooperation with International Partners

Of course, these goals can only be fully realized when we work strategically with international partners. Markets can only flourish when capital flows freely to its most productive uses. Public blockchains are inherently global and provide a rare opportunity to modernize payment and capital market infrastructure. Through cooperation, the U.S. and Europe can not only strengthen their own economies but also reinforce the transatlantic partnership.

It is commendable that Europe has taken an early lead. As the Digital Asset Markets Report points out, the EU’s Markets in Crypto-Assets Regulation (MiCA) is a comprehensive digital asset regulatory framework. Some European policymakers have already called for "MiCA 2" to cover decentralized finance, NFTs, and digital asset lending. I appreciate the foresight of our European allies in seeking regulatory clarity on their first attempt and believe the U.S. must learn from and draw on these experiences.

That said, I am determined to ensure that the U.S. does not fall behind any country in fostering an economic environment that supports financial innovation. As we catch up, I look forward to working with international partners to promote more innovative markets. As Alexis de Tocqueville said, we can "expand the scope of freedom and prosperity."

Artificial Intelligence and Finance: A New Era of Market Innovation

For the United States, our financial leadership depends on planning for the future, not fearing it. Just as blockchain is reshaping the way assets are traded and settled, artificial intelligence (AI) is ushering in the era of "agentic finance"—a system in which autonomous AI agents can execute trades, allocate capital, and manage risk at speeds unmatched by humans, with securities compliance mechanisms embedded at the code level.

The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies that were once limited to large Wall Street institutions. By combining AI with blockchain, we can empower individuals, enhance competition, and unlock new prosperity.

In this regard, the government's role is to ensure the establishment of common-sense safeguards while removing regulatory barriers to innovation. AI has already entered 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 on the horizon, and the world is watching. The choice before us is both simple and profound: either America moves forward with confidence and determination, or others will take the lead. I choose leadership, freedom, and growth—for our markets, our economy, and the next generation. And I also look forward to working with international partners to advance this goal and build a more prosperous and free society.

Conclusion

In conclusion, with your cooperation, we can shape future regulatory initiatives to achieve their intended functions—protecting investors while providing ample space for innovators and entrepreneurs. As I mentioned earlier, the SEC is entering a new era, realigning the institution’s long-standing principles with emerging opportunities. I believe that, in the regulatory issues I have discussed today, international cooperation will bring long-term benefits to all of us—both in the United States and globally.

I look forward to working with all of you, with determination commensurate to the opportunities before us.

Finally, thank you all for your time and attention. You have been patient and gracious listeners. I sincerely wish you a successful remainder of the roundtable meeting.

Thank you all, and have a pleasant afternoon.

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