Rulemaking and Economic Analysis | Paul Atkins Remarks
SEC RELEASES
Introduction
On May 16, 2025, the SEC Chair, Paul Atkins, spoke at the 12th annual conference on Financial Market Regulation.
Compliance professionals have been paying close attention to his statements, as the industry is hoping for a reduction in rulemaking in comparison to the previous administration.
In this talk, Atkins discusses the importance of economic analysis when regulators consider amending existing rules or adopting completely new regulations. We have provided key takeaways from his discussion on this topic.
Key Takeaways
- High-quality analysis of the economic impacts of regulation are an essential part of SEC rulemaking.
- Costs and benefits must be considered when deciding what is in the public’s interest.
- Rigorous economic analysis will be a bedrock to building sound regulatory policy.
- A problem must first be identified for a proper resolution to be implemented; Atkins is not interested in creating solutions for unidentified problems.
- Atkins believes previous administrations tended to prioritize the expansion of regulation over economic analysis, upsetting the balance between investor protection and capital formation/market efficiency.
- Policies will be promoted that foster economic growth and strengthen confidence in the markets.
Vigilant’s Conclusion
His comments are a welcome sign that the aggressive expansion of regulation in the previous administration will likely not continue.
It appears that any changes in regulation will carefully weigh the positive and negative effects on investors, firms, and the markets. However, firms should be aware we have yet to see strong evidence that enforcement activity will see a similar reduction.
Atkins has listed investor protection as a major goal along with capital formation, so it is likely that deficient compliance programs will continue to face major penalties under the current administration.
Contact Vigilant today to discuss how we can best prepare your compliance program for any new challenges ahead.