Original title: Keynote Address at the Inaugural OECD Roundtable on Global Financial Markets
Source: SEC
Original translation: Jonnah, MetaEra
Editor's Note: At the inaugural OECD Global Financial Markets Roundtable, U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins delivered a keynote speech. He emphasized the SEC's commitment to returning to its core mission—protecting investors, maintaining fair and efficient markets, and facilitating capital formation. He also highlighted the importance of reassessing foreign issuer accommodations and the importance of high-quality accounting standards and financial materiality. Atkins stated that the United States will promote the application of digital assets and artificial intelligence in financial markets under the "Project Crypto" framework, providing clearer regulatory rules, and called for closer collaboration with international partners to jointly shape the future of innovative, open, and prosperous capital markets. The following is a translation of the speech:
Good afternoon, ladies and gentlemen.
First, I want to thank Secretary General Coleman for his kind introduction. I also want to thank Carmine for inviting me to this inaugural roundtable and for organizing such a timely conversation to explore how we can work together to promote 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 here today is a testament to that. It's a great honor to be with you, especially as we at the U.S. Securities and Exchange Commission (SEC) refocus on our core mission: protecting investors; maintaining fair, orderly, and efficient markets; and facilitating capital formation.
Before I go further, I must clarify: the views expressed here today are my own and do not necessarily reflect the position of the SEC or my fellow Commissioners.
For me, returning to France feels like coming home. In the late 1980s, as a young lawyer working in the Paris office of a New York law firm, I learned not only the complexities of international finance but also the enduring value of cross-cultural collaboration. In the decades that followed, my various stints at the SEC have deepened my understanding that the principles we cherish in the United States—like the power of free enterprise and the dynamism of capital markets—resonate equally abroad. It is in this spirit that I welcome today's discussion on how to foster growth and opportunity in our respective economies.
Special facilitation arrangements for foreign issuers
For years, I've been fascinated by U.S.-European cooperation. I remember 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 were there, it was exhilarating to witness firsthand how the European internal market, driven by commerce and competition, took shape. These themes are once again front and center today as Europe discusses the future of the Savings and Investment Union. At the same time, even as the European market grows closer, 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 access to these companies, while ensuring a level playing field and protecting investor rights. Of course, the size and depth of the U.S. capital markets have always been attractive to foreign companies. These companies can enjoy a variety of potential benefits, including higher valuations, greater liquidity, access to U.S. capital, and increased reputation and visibility in the financial markets.
Since the SEC's inception, our rules have provided special accommodations for foreign companies accessing 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 prioritized ensuring that U.S. investors have access to sufficient information and understand the extent of disclosure required under a company's home laws.
In 1983, the SEC established the foundation for the current standard for determining which foreign companies qualify for these facilities. Since then, the SEC has continually reassessed and updated that standard in light of global market changes to better protect American investors. One of my first actions as Chairman was to request that the Commission approve a conceptual release seeking public comment to determine whether the standard should be updated in light of evolving financial markets and corporate legal structures.
The announcement seeks public comment on whether foreign companies listing in the U.S. should meet additional requirements — such as minimum foreign trading volume or listing on a major foreign exchange — to receive benefits not available to U.S. companies.
To be clear, the SEC welcomes foreign companies seeking access to U.S. capital markets. This announcement does not imply that the SEC intends to discourage or discourage these companies from listing on U.S. exchanges. Rather, our goal is to better understand the changes in foreign company listings in the U.S. over the past two decades and their impact on U.S. investors and markets. Notable changes include:
· A change in the composition of the foreign company as filed with the SEC;
Companies are increasingly choosing to register in jurisdictions such as the Cayman Islands that are separate from their actual headquarters, locations of operations, and governance frameworks that are subject to shareholder-focused governance frameworks.
These circumstances have impacted shareholder interests. In the face of these changes, does the SEC's original rationale for providing unconditional accommodations to all foreign companies still hold true? Or should the rules be updated? Retrospective evaluation of existing rules to ensure they continue to achieve their stated policy objectives is a key feature of an effective regulatory agenda.
While the formal public comment period closed on Monday, the SEC will of course consider comments received after the deadline to assess whether a rule amendment is warranted. I look forward to reviewing that feedback.
High-quality accounting standards
As we re-examine the types of foreign issuers that should receive these incentives, we must also not lose sight of the cornerstones of an effective regulatory system: high-quality accounting standards and financial materiality.
In terms of accounting standards, U.S. companies must prepare their 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 would allow foreign companies to prepare their financial statements directly using International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) without reconciling them to U.S. GAAP.
At the time, when the SEC removed the reconciliation requirement, it stated: “The sustainability, governance, and independent operation of the IASB were important considerations in our decision to remove the reconciliation requirement, as these factors are related to the IASB’s ability to continue to develop high-quality, globally accepted standards.” The SEC also specifically mentioned whether the International Accounting Standards Committee Foundation (the 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 charged with ensuring the secure funding of the IASB and the ISSB. This newly expanded responsibility must not distract the Foundation from its long-standing core mission of ensuring the stable funding of the IASB. In turn, the IASB must focus on promoting high-quality financial accounting standards and ensuring the reliability of financial reporting, rather than being used as a "backdoor" to achieve political or social agendas. Reliable financial reporting is essential for capital allocation decisions. We are all deeply concerned about the IASB's ability to obtain adequate and stable funding and continue to operate effectively. I also urge the IFRS Foundation to deliver on its goal of "stable funding" and prioritize the IASB's financial accounting standard-setting, rather than turning to far-fetched or speculative issues.
If the IASB does not secure full and stable funding, one of the premises on which the SEC removed the reconciliation requirement in 2007 may no longer hold, and we may need to review that decision retrospectively.
Financial importance
In addition to high-quality accounting standards, regulation based on financial materiality is also a pillar of 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 a company's products, services, and jobs. In contrast, a "dual materiality" regulatory framework also considers other non-financial factors.
In the EU, two recently passed laws—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD)—have advanced the dual materiality regulatory framework. These laws also affect U.S. companies doing business in the EU.
I am concerned about the highly prescriptive nature of these laws and the burden they place on American businesses, as these costs could ultimately be passed on to American investors and consumers. I'm encouraged by the EU's recent commitment that these laws will not unduly restrict transatlantic trade and that it is working to streamline and simplify them. However, further focus on the principle of financial materiality, rather than dual materiality, is necessary. Indeed, if Europe is to promote the development of its capital markets by attracting more businesses and investment, it should focus on reducing unnecessary reporting burdens on issuers rather than pursuing objectives unrelated to the economic success of companies and the well-being of shareholders.
Project Crypto
As we call on our partners to foster investor confidence and promote market vitality in their jurisdictions, the same priorities drive us to unlock the potential of digital assets in the United States.
As I mentioned earlier today, in the late 1980s, I worked at the Place de la Concorde, about four kilometers from where we're meeting now. Back then, I could never have imagined that I would one day be back here, speaking about the new technologies that were once denied, even resisted, but are now revolutionizing global finance. Here, just steps from Avenue Victor Hugo, I can't help but think of Victor Hugo's famous quote: "You can resist the invasion of armies, but not the invasion of ideas whose time has come."
Ladies and gentlemen, today we must admit it: the era of encryption has arrived.
For too long, the SEC has weaponized its investigative, subpoena, and enforcement powers to stifle the crypto industry. This approach is not only ineffective but also harmful—it forces jobs, innovation, and capital outflows. American entrepreneurs bear the brunt of this, forced to spend vast sums on legal defense rather than building their businesses. This chapter is now history.
Today marks a new day at the SEC. Policy will no longer be determined by ad hoc enforcement actions. We will provide clear, predictable rules of the road to help innovators thrive in America. President Trump has tasked me and my colleagues across the Administration to make the United States the global capital of crypto—and the President's Task Force on Digital Asset Markets has developed an ambitious blueprint to guide our work.
While Congress drafts comprehensive legislation, the Task Force has directed U.S. regulators to move swiftly to modernize our outdated regulatory landscape. The SEC is pursuing this mandate through Project Crypto, a comprehensive securities rulemaking initiative designed to update securities rules and regulations to enable our markets to migrate on-chain. Our priorities are clear:
We must provide certainty regarding the securities nature of crypto assets. The vast majority of crypto tokens are not securities, and we will draw the line.
Entrepreneurs must be able to raise funds on-chain without facing endless legal uncertainty.
“Super-app” trading platforms must be allowed to innovate and provide market participants with more choices. These platforms should be able to provide trading, lending, and staking services under a single regulatory framework.
Investors, advisors, and brokers should also have the freedom to choose from a variety of custody solutions.
At the same time, according to a recent working group report, the SEC will work with other agencies to ensure that platforms can offer trading, staking, and lending services for crypto assets (whether securities or not) under a single regulatory framework. I believe regulation should provide the "minimum effective dose" necessary to protect investors, and no more. We shouldn't burden entrepreneurs with duplicative red tape that only benefits the largest incumbents. By unleashing competition in both venues and products, we can help American companies compete fairly on the global stage.
As President Trump has said, America is a "nation of builders." Under my chairmanship, the SEC will encourage builders, not stifle them with red tape. 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 American markets, under American regulation, and ultimately benefit American investors.
Opportunities for collaboration with international partners
Of course, these goals can be best achieved when we collaborate strategically with international partners. Markets thrive only when capital flows freely to its most productive uses. Public blockchains, by their very nature global, offer a unique opportunity to modernize payments and capital markets infrastructure. By collaborating, the US and Europe can not only strengthen their respective economies but also the transatlantic partnership.
Europe deserves praise for its early leadership. As noted in the Digital Asset Markets Report, the EU's Markets in Crypto-Assets (MiCA) Regulation represents a comprehensive regulatory framework for digital assets. Some European policymakers have called for a "MiCA 2" to cover decentralized finance, non-fungible tokens (NFTs), and digital asset lending. I applaud our European allies for their foresight in this first attempt at regulatory clarity, and I believe the United States must learn from their experience.
That said, I am determined to ensure that the United States does not lag behind any other nation in fostering an economic environment that supports financial innovation. As we catch up, I look forward to working with international partners to foster more innovative markets. As Alexandre de Tocqueville put it, we can "extend 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 how assets are traded and settled, artificial intelligence (AI) is ushering in an 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 embedded in their code.
The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies once limited to large Wall Street institutions. By combining AI and blockchain, we can empower individuals, strengthen competition, and unlock new prosperity.
In this regard, government has a role to play in ensuring common-sense safeguards are in place while removing regulatory barriers that hinder innovation. AI has already entered the capital markets, and its role will only grow. We must resist the temptation to overreact out of fear. On-chain capital markets and agency finance are on the horizon, and the world is watching. The choice before us is both simple and profound: Either the United States moves forward with confidence and determination, or someone else will take its 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 and build a more prosperous and free society.
Conclusion
In short, with your collaboration, we can shape future regulation so it does what it was intended to do—protect investors while providing ample room for innovators and entrepreneurs. As I've said before, this is a new day at the SEC, as we realign our agency's long-standing principles with emerging opportunities. I believe that international cooperation on regulatory issues like the ones I've discussed today will bring long-term benefits to all of us—both in the United States and around the world.
I look forward to working with you to undertake this work with a commitment commensurate with the opportunities we present.
Finally, thank you all for your time and attention. And thank you all for your patience and forbearance. I sincerely wish you all the best for the rest of the roundtable.
Thank you everyone and have a nice afternoon.
