U.S. Securities & Exchange Commission Chairman Paul S. Atkins published remarks from a Financial Stability Oversight Council meeting in which he said he would support the proposal under consideration to update the Council’s interpretive guidance on nonbank designation. He framed the proposal as a step in the right direction but cautioned that it would not address deeper structural issues in the framework. Atkins reiterated his long-standing skepticism of nonbank designation, arguing that designating nonbank entities for Federal Reserve Board regulation was ill-advised and flawed as established in the Dodd-Frank Act and is not an appropriate mechanism for maintaining financial system strength or resilience. He said only Congress can remedy the underlying deficiencies, while regulators can continue refining interpretive guidance within existing authorities. He indicated that the proposal would move forward for public comment.
U.S. Securities & Exchange Commission 2026-03-26
U.S. Securities & Exchange Commission chair supports Financial Stability Oversight Council proposal to refine nonbank designation guidance
U.S. SEC Chairman Paul S. Atkins supported updating the Financial Stability Oversight Council's interpretive guidance on nonbank designation, calling it a positive step but insufficient for structural issues. He criticized the Dodd-Frank Act's nonbank designation as unsuitable for financial system resilience and urged Congressional action to address fundamental deficiencies. The proposal will proceed to public comment.