On December 2, 2025, SEC Chairman Paul Atkins spoke at the New York Stock Exchange about the current state of U.S. capital markets, the challenges they face, and potential reforms to strengthen them.
As the United States approaches its 250th anniversary, the Chairman highlighted the history of the markets and how he believes the nation’s economic growth has long been fueled by risk-taking, entrepreneurship, and access to investment opportunities. He also touched upon the Securities Act’s role in the markets and quoted President Roosevelt who stated that “[t]he purpose of the [Securities Act] is to protect the public with the least possible interference with honest business.”
Chairman Atkins then reflected on what he believes is a problem – that today’s regulatory landscape may be making it harder for companies to go public and for investors to participate in early growth. He stated “Rules have multiplied faster than the problems that they were intended to solve—and in its drift away from original congressional intent, the State has sought to substitute its discernment for that of market participants.” Chairman Atkins lamented the decline in the number of companies listed on U.S. exchanges and indicated that he believes the path to public ownership has become overly burdened with rules that often create more friction than benefit. Chairman Atkins stated there are many SEC rules and practices that have accrued that he believes are ripe for reform.
The Chairman’s Reform Approach
- Disclosure requirements should be rooted in the concept of financial materiality.
Chairman Atkins emphasized that disclosures should focus on financial materiality. In his view, clarity and relevance should take priority over volume. He indicated “lengthy” annual reports and proxy statements that require substantial costs and company resources “do more to obscure than to illuminate.” Chairman Atkins also noted the importance of avoiding information overload.
- Tailor requirements to company size and maturity.
The Chairman suggested that smaller public companies should not face the same regulatory burdens as the largest public companies. He called out that he believes it is time to revisit these concepts and that he believes the SEC should give “strong consideration” to the thresholds that separate “large” companies from “small” companies in imposing disclosure requirements.
- Reduce the impact of politics on shareholder meetings and excessive litigation.
He noted that shareholder meetings should remain focused on core governance issues, and that the securities litigation environment should discourage frivolous lawsuits while preserving pathways for legitimate claims. Chairman Atkins stated “At the SEC, we have been hard at work on executing this plan, and we look forward to soon sharing the progress that is taking shape.”
- Focus on reducing compensation disclosures.
Consistent with some of his prior statements, Chairman Atkins signaled concerns about compensation disclosures. In providing an example of required disclosures that he believes are “unmoored from materiality”, he cited executive compensation disclosures. Chairman Atkins noted “we need a re-set of these [executive compensation disclosures] and other SEC disclosure requirements.”
- Encourage companies to go public.
The Chairman reiterated that he wants to make IPOs “great again” and wants companies in all stages of growth and all industries to be able to pursue an IPO. He stated the SEC should build on the “IPO on-ramp” that Congress established under the JOBS Act and, for example, permitting companies to remain subject to reduced disclosure requirements beyond the first year of going public.
SEC Priorities
Ultimately, Chairman Atkins framed the challenge as one of regulatory balance: enabling investor protection while also fostering an environment where companies can innovate and grow. His remarks offer an interesting preview of the considerations that may shape the SEC’s agenda in the coming years, particularly as policymakers revisit how public markets can better support capital formation, competition, and long-term economic growth.
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