The Securities and Exchange Commission (SEC) is set to review its extensive rulebook. Speaking at the Securities Industry and Financial Markets Association (SIFMA) annual meeting in Washington, Chair Paul Atkins said it was time to recalibrate, noting that investors ultimately bear the costs of the regulatory system. Referring to key regulations such as Regulation S-K and Regulation S-X, Atkins noted that while some updates have been made, “it has not really been looked at in an overall sense for 40 years.” He likened the process ahead to a “spring cleaning” of the SEC’s “attic, basement, and garage” to ensure the rules are suitable for the 21st century.
Atkins emphasized that reforms will be guided by the Administrative Procedure Act (APA), calling it “a backbone of due process of the SEC.” He highlighted ongoing initiatives, including roundtables on executive compensation and digital assets, and a concept release on redefining foreign private issuers. Addressing broader market challenges, Atkins said it has become “uncool to be a public company,” citing high compliance costs, excessive litigation, and a “weaponization” of shareholder proposals. He confirmed that the SEC already has “plenty” of authority to implement necessary reforms aimed at simplifying disclosures and revitalizing public markets.
