SEC Chairman Paul Atkins stated at the OECD Global Financial Market Roundtable: "We must acknowledge that the era of Crypto Assets has arrived."

Paul Atkins gave a speech on the encryption project.

At the OECD global financial market roundtable in Paris, SEC Chairman Paul Atkins delivered a keynote speech emphasizing that "the majority of encryption tokens are not securities" and proposed an ambitious plan aimed at bringing activities such as cryptocurrency trading, lending, and staking under a unified regulatory framework, paving the way for the United States to become a global cryptocurrency hub. Atkins quoted French writer Victor Hugo's famous saying — "The invasion of an army can be resisted, but the invasion of thoughts cannot be resisted" — vividly illustrating the irreversibility of the cryptocurrency era, calling on regulators to follow the trend and provide clear, predictable rules to support innovators in thriving in the United States.

Atkins provided a detailed introduction to the SEC's "Project Crypto" initiative, which aims to modernize existing securities regulations and promote the transition of the market to on-chain operations. He specifically mentioned that the SEC will support the development of "super-apps" platforms, which can provide trading, lending, and staking services under a single regulatory framework, along with the flexibility of diverse custodial solutions. He emphasized that regulation should follow the principle of "minimum effective dose," providing only the most basic rules necessary to protect investors, and avoiding cumbersome regulations that hinder entrepreneurs and stifle innovation.

In addition, Atkins praised the EU's Markets in Crypto-Assets Regulation (MiCA), calling it a "comprehensive regulatory framework for digital assets," and stated that the U.S. should learn from Europe's early regulatory experiences. He called for strengthened international cooperation to promote a more innovative global market while ensuring that the U.S. maintains its leading position in financial innovation.

In the speech, Atkins also touched on the potential of combining artificial intelligence (AI) with blockchain, pointing out that AI-driven agency finance will bring more efficient markets, lower costs, and broader access to financial services. He emphasized that the government should safeguard technological innovation by establishing common-sense guardrails and eliminating regulatory obstacles.

Full text of the keynote speech by SEC Chairman Paul Atkins at the first OECD Global Financial Markets Roundtable.

(Source: U.S. Securities and Exchange Commission)

Ladies and gentlemen, good afternoon.

Firstly, I would like to thank Secretary-General Koman for the warm introduction, and also thank Kamein for inviting me to participate in this roundtable meeting and for organizing such a timely dialogue to discuss how we can work together to enhance the global competitiveness of capital markets and promote economic growth in our respective jurisdictions. I know that all of you are dedicated to achieving these goals, and your presence today reflects that commitment. I am very honored to meet with all of you, especially at a time when our Securities and Exchange Commission (SEC) is reaffirming our core responsibilities: protecting investors; maintaining fair, orderly, and efficient markets; and promoting capital formation.

Now, before I elaborate further, I believe you all understand that the views I express here are solely my own and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (SEC) or my fellow commissioners. But for me, returning to France feels like coming home. In the late 1980s, I was a young lawyer in the Paris office of a New York law firm, where I not only learned the complexities of international finance but also experienced the lasting value of cross-cultural collaboration. Over the decades that followed, I served multiple terms at the SEC, which further made me realize that the principles we cherish in the U.S., including the power of free enterprise and the vitality of capital markets, can also find common ground abroad. It is in this spirit that I welcome today’s discussion on promoting domestic economic growth and opportunity.

Special arrangements for foreign issuers

For years, I have been fascinated by the cooperation between the United States and Europe. I clearly remember the scene before the "Big Bang" in 1992, which gave birth to the European Single Market and brought with it enormous opportunities. For those of us present at the time, it was exhilarating to see the European internal market gradually taking shape under the impetus of business and competition—now, as Europe considers initiatives like the Savings and Investment Union, these themes are once again in the spotlight. At the same time, even for a continent that is more closely connected, cooperation with markets beyond the new Europe remains crucial. Of course, a powerful sovereign nation like the United States must continue to engage in constructive cooperation with the world in ways that promote its own prosperity.

At the Securities and Exchange Commission, these priorities are reflected in our work: attracting foreign companies to the U.S. market and providing Americans with the opportunity to invest in these companies, while ensuring that both U.S. and foreign companies enjoy a level playing field and protecting our investors. Of course, the size and depth of the U.S. capital markets have always been and continue to be attractive to non-U.S. companies. They can reap various potential benefits, including higher valuations, greater liquidity, access to U.S. capital, and enhanced visibility and reputation in the financial markets.

Since the establishment of the U.S. Securities and Exchange Commission (SEC), our rules have provided special conveniences for foreign companies entering the U.S. capital markets. These conveniences acknowledge the differences between U.S. companies and foreign companies in terms of business and market practices, accounting standards, corporate governance requirements, and more. Nevertheless, the SEC has always been concerned that U.S. investors need to have a full understanding of the information provided by foreign issuers, and to what extent such information is provided in accordance with the laws of their home jurisdictions.

In 1983, the U.S. Securities and Exchange Commission (SEC) established the foundation for the current standards, allowing foreign companies to enjoy these special treatments according to that standard. Since then, the SEC has reassessed and updated the standard as needed to respond to changes in the global market and protect American investors. As chairman, one of my first actions was to request the commission to approve the release of a concept statement to gather public feedback on whether the standard should be updated to reflect the evolution of financial markets and corporate legal structures.

The concept release seeks public feedback to determine whether foreign companies listed in the United States should be subject to additional conditions—such as minimum foreign trading volume or listing on a major foreign exchange—so that they can enjoy benefits not available to U.S. companies.

It is important to clarify that the SEC welcomes foreign companies seeking to enter the U.S. capital markets. The release of this concept does not mean that the SEC intends to prevent such companies from listing on U.S. exchanges. On the contrary, our goal is to better understand the significant changes in the number of foreign companies that have gone public in the U.S. over the past two decades and their impact on U.S. investors and the U.S. market. Notable changes include the composition of foreign companies reporting to the SEC, as well as the trend of registering in jurisdictions such as the Cayman Islands, which differ from the location of the company's headquarters and operations, and are subject to governance frameworks that involve shareholder interests. Given these changes, is the initial rationale for providing unconditional special accommodations to all foreign companies still valid, or should our rules be updated? A retrospective review of our rules to assess whether they continue to achieve their intended policy goals is one of the hallmarks of effective regulatory agendas.

Although the official comment period ended last Monday, the SEC will certainly consider comments received after the deadline to evaluate whether to propose rule changes. I look forward to reviewing the public feedback on this topic.

High-quality accounting standards

When we view the types of foreign issuers that receive special treatment from a new perspective, we should not overlook the cornerstone of any effective regulatory system: high-quality accounting standards and financial significance.

Regarding accounting standards, U.S. companies must prepare their financial statements in accordance with U.S. Generally Accepted Accounting Principles (US GAAP). During my tenure as a commissioner of the U.S. Securities and Exchange Commission (SEC) in 2007, I voted in favor of amending the rules to allow foreign companies to prepare their financial statements according to the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), without needing to reconcile with U.S. Generally Accepted Accounting Principles.

The U.S. Securities and Exchange Commission pointed out when canceling the coordination requirement that "the sustainability, governance, and continued independent operation of the International Accounting Standards Board as a standard-setting body are important considerations for the cancellation of the coordination requirement, as these factors relate to the ability of the International Accounting Standards Board to continue to develop high-quality globally accepted standards." The U.S. Securities and Exchange Commission specifically noted that the International Accounting Standards Committee Foundation (the predecessor of the International Financial Reporting Standards Foundation) has the capability to provide the International Accounting Standards Board with "stable funding."

In 2021, the International Financial Reporting Standards Foundation announced the establishment of the International Sustainability Standards Board (ISSB), whose trustees are now responsible for ensuring the financial security of the International Accounting Standards Board and the ISSB. The recent expansion of the International Financial Reporting Standards Foundation's mandate does not shift its long-standing core responsibility, which is to fund the International Accounting Standards Board. In turn, the International Accounting Standards Board must promote high-quality accounting standards that should focus on driving reliable financial reporting and not be used as a backdoor to achieve political or social agendas. Reliable financial reporting is crucial for supporting capital allocation decisions. We all have a keen interest in the International Accounting Standards Board receiving adequate funding and operating normally, and I encourage the International Financial Reporting Standards Foundation to achieve its goal of "stabilizing funding," prioritizing the International Accounting Standards Board and its focus on financial accounting standards over spurious and speculative issues.

If the International Accounting Standards Board does not receive sufficient and stable funding, then one of the key prerequisites for the U.S. Securities and Exchange Commission's 2007 elimination of regulatory requirements for foreign companies may no longer be valid, and we may need to conduct a retrospective review of that decision.

Financial significance

Of course, in addition to high-quality accounting standards, regulation based on financial materiality is another pillar for maximizing the effective flow of capital. Focusing on financial materiality means that information disclosure requirements, corporate governance standards, and other regulatory measures are oriented towards the interests of investors, after all, investors provide the capital for the products, services, and jobs created by the company. In contrast, a regulatory system based on dual materiality 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)—advocate for a dual materiality regulatory approach. These laws also affect American companies operating in the EU.

I am deeply concerned about the regulatory nature of these laws and the burden they impose on American companies, as these costs may be passed on to American investors and customers. The EU's recent commitment to ensure that these laws do not impose undue restrictions on transatlantic trade and its efforts to streamline and simplify these laws is encouraging, but further efforts are needed to refocus the regulatory framework on the principle of financial materiality rather than the principle of dual materiality. In fact, as Europe seeks to promote the development of its capital markets by attracting more companies and investments, it should focus on reducing unnecessary reporting burdens on issuers, rather than pursuing objectives unrelated to companies' economic success and their shareholders' welfare.

encryption project

As we urge our partners to enhance investor confidence and activate markets within their jurisdictions, the same priorities compel us to unleash the potential of digital assets in the United States.

As I mentioned earlier today, in the late 1980s, I worked at Concord Square, about four kilometers from where we are meeting now. At that time, I could hardly imagine myself discussing new technologies in my current position, including those that were once completely denied or resisted, but are now fundamentally changing global finance. Today, just a few steps away from Boulevard Victor Hugo, it seems apt to summarize our era in his words: "The invasion of armies can be resisted, but the invasion of ideas cannot be resisted." - The invasion of armies can be resisted, but the era of ideas has arrived. Ladies and gentlemen, today, we must acknowledge: the era of encryption has arrived.

For a long time, the SEC has used its investigative, subpoena, and enforcement powers to undermine the encryption industry. This practice is not only ineffective but also harmful; it drives jobs, innovation, and capital overseas. American entrepreneurs are the first to suffer, forced to invest huge sums in building legal defenses instead of developing their businesses. This history has become a thing of the past.

The SEC has ushered in a brand new day. Policies will no longer be dictated by ad hoc enforcement actions. We will provide clear and predictable rules to ensure that innovators thrive in the United States. President Trump has tasked me and my colleagues across government departments with making the United States the world’s encryption capital—the President’s Digital Asset Market Working Group has developed a grand blueprint to guide our efforts.

As Congress drafts comprehensive legislation, the working group has instructed U.S. regulators to take swift action to update our outdated rulebook. We are fulfilling this mission through Project Crypto, a comprehensive initiative aimed at updating securities rules and regulations to enable our markets to operate on-chain. Our priorities are clear: we must ensure the secure status of encryption assets. Most encryption tokens are not securities, and we will clearly define these boundaries. We must ensure that entrepreneurs can raise funds on-chain without facing endless legal uncertainty. We must also allow "super app" trading platforms to innovate to increase choices for market participants. Platforms should be able to offer trading, lending, and staking services under a single regulatory framework. Investors, advisors, and broker-dealers should also have the freedom to choose among various custody solutions.

At the same time, according to a recent working group report, the U.S. Securities and Exchange Commission (SEC) will collaborate with other agencies so that platforms can offer encryption asset trading (whether or not it is a security) as well as services like staking and lending under a single regulatory framework. I believe regulators should provide the minimum effective regulatory intensity needed to protect investors, and should not overregulate. We should not burden entrepreneurs with repetitive rules that only the largest existing enterprises can bear. By unleashing competition in venues and products, we can help ensure that U.S. companies compete fairly on a global scale.

President Trump referred to America as the "land of builders." Under my leadership, the SEC will encourage these builders rather than stifle them with red tape. Our goal is simple: to usher in a golden age of financial innovation on American soil. Whether through tokenized stock ledgers or entirely new asset classes, we hope to achieve breakthroughs in the U.S. market and benefit American investors under U.S. oversight.

Opportunities to collaborate with international peers

Of course, when we strategically collaborate with international partners who are equally committed to innovation and regulatory clarity, these priorities can reach their maximum potential. When capital flows freely to its most productive uses, markets thrive. Public blockchains are inherently global, providing a rare opportunity to modernize payment and capital market infrastructure. Through cooperation, the U.S. and Europe can strengthen our domestic economies while enhancing our transatlantic partnership. It is commendable that Europe took action early on. As acknowledged in the report "Digital Asset Markets," the EU's encryption asset market (MiCA) regulation embodies a comprehensive digital asset framework. Some European policymakers have already called for the creation of "MiCA 2" to address issues such as decentralized finance, non-fungible tokens, and digital asset lending. I appreciate the foresight shown by our European allies in their initial attempts at regulatory clarity, and I believe that the U.S. must learn from these efforts.

That said, I am determined to ensure that the United States is at the forefront of fostering an economic environment that supports financial innovation. As we catch up, I look forward to collaborating with international counterparts to promote more innovative market development. As Alexis de Tocqueville said, together we can "expand" the realm of freedom and prosperity.

Artificial Intelligence and Finance: A New Era of Market Innovation

For us, America's financial leadership depends on planning for the future rather than fearing it. Just as blockchain is reshaping the way we trade and settle assets, artificial intelligence (AI) is also opening the door to agent-based finance—in this system, autonomous AI agents can execute transactions, allocate capital, and manage risks at speeds unmatched by humans, with compliance to securities laws embedded in their code.

The benefits could be enormous: faster markets, lower costs, and broader access to strategies once exclusive to Wall Street giants. By combining artificial intelligence with blockchain, we can empower individuals, enhance competition, and unlock new prosperity.

The government's responsibility is to ensure that common-sense safeguards are in place while eliminating regulatory barriers that hinder innovation. Artificial intelligence has now become a part of our capital markets, and its role will only continue to grow. We must resist the temptation to overreact out of fear. On-chain capital markets and proxy finance are about to emerge, and the entire world is watching. The choice we face is simple yet profound: either the United States moves forward with confidence and conviction, or other countries will do so. I choose leadership, freedom, and growth—for our markets, for our economy, and for the next generation. I look forward to collaborating with international partners who are intent on working with us to pursue a more prosperous and free society.

Conclusion

Finally, with your cooperation, we can shape future regulatory measures to fulfill their established functions, namely to protect investors while leaving ample space for the development of innovators and entrepreneurs. As I mentioned earlier, the SEC is ushering in a new day, and we are realigning its consistent principles based on emerging possibilities. I believe that international cooperation on the regulatory matters I discussed will ultimately benefit all of us, including the United States and the world, in the long run. I look forward to participating in this work with a determination that matches the opportunities at hand.

Now, I would like to thank everyone for their time and attention. The audience has been patient and accommodating. I sincerely wish everyone a smooth proceeding for the next segment of the roundtable discussion.

Thank you, ladies and gentlemen, please pay attention to the beautiful afternoon.