Original Title: Keynote Address at the Inaugural OECD Roundtable on Global Financial Markets

Original Source: SEC

Original Translation: Jonnah, MetaEra

Editor's Note: At the inaugural OECD Roundtable on Global Financial Markets, SEC Chairman Paul S. Atkins delivered a keynote address. He emphasized that the SEC will return to its core mission of protecting investors, maintaining fair and efficient markets, and promoting capital formation. He also proposed a reassessment of convenient arrangements for foreign issuers, the importance of high-quality accounting standards, and financial significance. Atkins noted that the United States will drive the application of digital assets and artificial intelligence in the financial markets under the "Project Crypto" framework, provide clearer regulatory rules, and call for enhanced cooperation with international partners to shape the future of innovative, open, and prosperous capital markets. The following is the full translation of the speech:

Ladies and gentlemen, good afternoon.

First, I want to thank Secretary-General Coleman for the warm introduction, and I also want to thank Carmine for the invitation, which has given me the opportunity to participate in this inaugural roundtable and organize such a timely dialogue on how we can collaborate to promote global competition in the capital markets while fostering economic growth in our respective jurisdictions. I know that all of you present here today are committed to these goals, and your presence today is the best testament to that. I am very honored to be able to gather with all of you here, especially as our U.S. Securities and Exchange Commission (SEC) refocuses on our core mission: protecting investors; maintaining fair, orderly, and efficient markets; and promoting capital formation.

Before proceeding further, I must clarify: the views I express here today are my own and do not necessarily reflect the position of the SEC as an agency or my other fellow commissioners.

For me, returning to France feels like "coming home." In the late 1980s, I was a young lawyer working in the Paris office of a New York law firm. At that time, I not only learned about the complexity of international finance but also experienced the lasting value of cross-cultural collaboration. Over the following decades, I have served at the SEC multiple times, which deepened my understanding: the principles we cherish in the United States—such as the power of free enterprise and the vitality of capital markets—equally resonate overseas. It is in this spirit that I warmly welcome today's discussion on how to drive growth and opportunity in our respective economies.

Special Accommodation Arrangement for Foreign Issuers

Over the years, transatlantic cooperation has always fascinated me. I remember the time before the 1992 "Financial Big Bang," which gave birth to the European Single Market and brought enormous opportunities with it. For those of us who were there at the time, witnessing the gradual formation of the internal European market through business and competition was exhilarating. Today, as Europe discusses the path towards a Savings and Investment Union, these themes are once again in focus. Meanwhile, despite the increasing integration of the European market, cooperation beyond the region remains crucial. Sovereign nations like the United States must continue to engage with the world in a constructive manner to promote shared prosperity.

At the SEC, these priorities are reflected in our efforts to attract foreign companies to the U.S. market, provide U.S. investors with opportunities to invest in these companies, ensure a level playing field for U.S. and foreign firms, and safeguard investor rights. Of course, the size and depth of the U.S. capital markets have always been attractive to foreign companies. These companies can reap various potential benefits, including higher valuations, greater liquidity, access to U.S. capital, and enhanced reputation and visibility in the financial markets.

Since its inception, the SEC has provided special accommodation arrangements for foreign companies entering the U.S. capital market. These arrangements recognize differences between U.S. and foreign companies in terms of business and market practices, accounting standards, corporate governance requirements, and more. However, the SEC also places great importance on ensuring that U.S. investors receive adequate information and understand the level of disclosure of such information under the company's home country legal framework.

In 1983, the SEC established the foundation of the current standard to determine which foreign companies can benefit from these accommodations. Since then, the SEC has consistently reassessed and updated this standard in response to global market changes to better protect U.S. investors. One of my first actions as Chairman was to request the Commission to approve the publication of a concept release to solicit public input on whether the standard should be updated to reflect the evolution of financial markets and corporate legal structures.

This release seeks public input on whether additional conditions, such as minimum foreign trading volume or listing on a major foreign exchange, should be met by foreign companies seeking U.S. listing to receive accommodations not available to U.S. companies.

It is important to note that the SEC welcomes foreign companies seeking to access the U.S. capital market. This release does not indicate that the SEC intends to hinder or discourage these companies from listing on U.S. exchanges. On the contrary, our goal is to better understand the changes brought about by foreign companies listing in the U.S. over the past two decades and the impact on U.S. investors and the market. Notable changes include:

· The composition of foreign companies registered with the SEC has changed;

· An increasing number of companies are choosing to register in jurisdictions such as the Cayman Islands, which differ from the actual headquarters, operational locations, and governance frameworks, and are subject to governance frameworks that affect shareholder interests.

These situations have impacted shareholder interests. In the face of these changes, is the original rationale for providing unconditional facilitation to all foreign companies still valid for the SEC? Or should the rules be updated? Conducting a retrospective review of existing rules to ensure they still achieve the intended policy objectives is a key feature of effective regulatory agendas.

While the formal public comment period ended this past Monday, the SEC will certainly consider comments received after the deadline to assess the need for rule revisions. I look forward to reviewing these feedback.

High-Quality Accounting Standards

As we reconsider the types of foreign issuers eligible for facilitation, we must not overlook the cornerstone of an effective regulatory system: high-quality accounting standards and financial importance.

Regarding accounting standards, U.S. companies must prepare 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 revision allowing foreign companies to directly adopt the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) to prepare financial statements without reconciliation to U.S. GAAP.

At that time, the SEC cited the sustainability, governance, and independent operation of the IASB as significant considerations for eliminating the reconciliation requirement, as these factors relate to whether the IASB can continue to develop high-quality, globally accepted standards. The SEC also specifically mentioned whether the International Accounting Standards Committee Foundation (IASC Foundation, the predecessor to the IFRS Foundation) could secure "stable funding" to support the IASB.

In 2021, the IFRS Foundation announced the establishment of the International Sustainability Standards Board (ISSB) and entrusted the Foundation's trustees with ensuring the financial stability of the IASB and ISSB. This new expanded responsibility should not divert the Foundation from its long-standing core mission of safeguarding the IASB's financial stability. In turn, the IASB must focus on advancing high-quality financial accounting standards to ensure the reliability of financial reporting, rather than being used as a "backdoor" for achieving political or social agendas. Reliable financial reporting is crucial for capital allocation decisions. We are all deeply concerned about whether the IASB can obtain sufficient and stable financial support and maintain effective operations. I also urge the IFRS Foundation to fulfill the goal of "financial stability," making the development of financial accounting standards by the IASB a top priority, rather than turning to strained or speculative issues.

If the IASB fails to secure full and stable funding, then one of the premises for the SEC's 2007 exemption from regulatory requirements may no longer hold, and we may need to conduct a retrospective review of that decision.

Financial Materiality

In addition to high-quality accounting standards, regulatory oversight based on financial materiality is also a cornerstone of enabling efficient capital flows. The concept of "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 necessary to drive enterprise products, services, and employment. In contrast, a "dual materiality" regulatory framework simultaneously considers other non-financial factors.

In the EU, two recent 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 impact U.S. companies operating in the EU.

I am concerned about the high level of standardization of these laws and the burden they place on U.S. enterprises, as these costs may ultimately be passed on to American investors and consumers. The EU has recently pledged that these laws will not unduly restrict transatlantic trade and is striving to streamline and simplify these laws. This is encouraging to me, but there is still a need to further focus on the principle of financial materiality rather than dual materiality. In fact, if Europe wants to promote capital market development by attracting more business and investment, it should focus on reducing unnecessary reporting burdens on issuers rather than pursuing goals unrelated to the economic success of enterprises and the well-being of shareholders.

Project Crypto

As we call on our partners to enhance investor confidence and drive market vitality in their jurisdictions, the same priorities urge us to unleash the potential of digital assets in the United States.

As I mentioned earlier today, in the late 1980s, I worked at Concorde Plaza, about four kilometers from our current meeting place. At that time, I could never have imagined that one day I would return here in my current capacity to discuss the new technologies that were once denied or resisted but are now revolutionizing global finance. Here, just steps away from Hugo Avenue, I cannot help but think of Victor Hugo's words: "You can resist an invading army; you cannot resist an idea whose time has come."

Ladies and gentlemen, today we must acknowledge: the era of crypto is here.

For a long time, the SEC has weaponized investigations, subpoenas, and enforcement powers to stifle the crypto industry. This approach has been not only ineffective but also harmful—it has forced job losses, stifled innovation, and led to capital outflows. American entrepreneurs, in particular, have had to spend significant funds on legal defense rather than business development. That chapter is now history.

Today, the SEC welcomes a new day. Policy will no longer be dictated by ad hoc enforcement actions. We will provide a clear, predictable path to help innovators thrive in the United States. President Trump has tasked me and my colleagues in government to build America into the global crypto capital—while the President's Working Group on Digital Assets has laid out an ambitious blueprint to guide our efforts.

As Congress drafts comprehensive legislation, the working group has directed U.S. regulatory agencies to move swiftly to modernize our outdated regulatory framework. The SEC is advancing this task through "Project Crypto," a comprehensive reform of securities regulations aimed at updating rules and regulations to enable our markets to transition on-chain. Our priorities are crystal clear:

· There must be certainty for the securities attributes of crypto assets. The vast majority of crypto tokens are not securities, and we will draw a clear line.

· Entrepreneurs must be able to raise funds on-chain without facing endless legal uncertainty.

· "Super-app" type trading platforms must be allowed to innovate, giving market participants more choices. These platforms should be able to offer trading, lending, and staking services under a single regulatory framework simultaneously.

· Investors, advisors, and brokers should also have the right to choose from a variety of custody options.

Meanwhile, based on a recent working group report, the SEC will collaborate with other agencies to ensure platforms can offer trading, staking, and lending services for crypto assets (securities or not) under a single regulatory framework. I believe regulation should provide the "minimum effective dose" of protection that investors need, and no more. We should not burden entrepreneurs with unnecessary red tape, which only serves to advantage the largest incumbents. By unleashing venue and product competition, we can help U.S. firms compete fairly on the global stage.

As President Trump has said, America is a "nation of builders." During my tenure as chairman, the SEC will encourage builders rather than stifle them with red tape. Our goal is simple: to ignite a golden age of financial innovation on American soil. Whether it's tokenized ledgers of stocks or entirely new asset classes, we want these breakthroughs to emerge in the U.S. market, under U.S. oversight, and ultimately benefit U.S. investors.

Opportunities for Collaboration with International Partners

Of course, these goals can be fully realized when we strategically collaborate with international partners. Only when capital flows freely to its most productive uses can markets prosper. Public blockchains are inherently global, providing a rare opportunity for modernizing payment and capital market infrastructure. Through collaboration, the U.S. and Europe can not only strengthen their economies but also reinforce transatlantic partnerships.

Of note, Europe has been at the forefront early on. As highlighted in the "Digital Asset Market Report," the European Union's Markets in Crypto-Assets Regulation (MiCA) stands as a comprehensive digital asset regulatory framework. Some European policymakers have already called for the creation of "MiCA 2" to encompass decentralized finance, non-fungible tokens (NFTs), and digital asset lending. I applaud our European allies for their foresight in clarifying regulation for the first time and believe the United States must learn from and draw upon this experience.

That being said, I am determined to ensure that the United States does not fall behind any country in fostering an economic environment supportive of financial innovation. As we catch up, I look forward to collaborating with international partners to promote a more innovative market. As Alexis de Tocqueville said, we can "extend the range 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 asset trading and settlement, artificial intelligence (AI) is ushering in the era of "agentic finance"—where autonomous AI agents can execute trades, allocate capital, and manage risk at speeds unmatched by humans, embedding securities compliance mechanisms at the code level.

The potential benefits are enormous: faster markets, lower costs, and broader access to investment strategies that were once confined to Wall Street's large institutions. By combining AI with blockchain, we can empower individuals, strengthen competition, and unlock new prosperity.

In this regard, it is the government's responsibility to ensure the establishment of common-sense safeguards while removing regulatory barriers that hinder innovation. AI has entered the capital markets, and its role will only grow. We must resist the temptation to overreact out of fear. Blockchain-based capital markets and agentic finance are on the horizon, with the world's eyes on them. The choice before us is both simple and profound: either the United States moves forward with confidence and determination, or others will take our place. I choose leadership, freedom, and growth—for our markets, our economy, and the next generation. I also look forward to working with international partners to advance this goal for a more prosperous and free society.

Conclusion

In conclusion, together, we can shape future regulatory measures to fulfill their intended functions—protecting investors while providing ample space for innovators and entrepreneurs. As I mentioned earlier, the SEC is embracing a new day, realigning this institution's long-standing principles with emerging opportunities. I believe that in the regulatory topics I have discussed today, international cooperation will bring long-term benefits to all of us—whether in the United States or globally.

I look forward to working with all of you, bringing to this effort the determination commensurate with the current opportunity.

Finally, thank you all for your time and attention. Your audience has been patient and gracious. I sincerely wish you all the best for the remainder of the roundtable.

Thank you, and have a pleasant afternoon.

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