U.S. Securities and Exchange Commission (SEC) Chairman Paul S. Atkins, testifying before the U.S. House Financial Services Committee, set out an agenda to streamline public-company reporting, advance a federal framework for crypto markets, and refocus enforcement on fraud and investor harm. He said he has directed SEC staff to conduct a comprehensive review of the Consolidated Audit Trail (CAT), covering governance, funding, potential cost-savings measures, design and functionality, scope, regulatory use, and security. The testimony linked disclosure modernization to compliance costs, citing an estimate that public companies spend USD 2.7 billion annually to file annual reports, and framed a three-part approach to widen the path to public ownership through materiality-based disclosures, refocusing shareholder meetings on significant corporate matters, and exploring litigation alternatives. On digital assets, Atkins backed congressional passage of the CLARITY Act and said the SEC is ready to implement it, while a now-joint “Project Crypto” with Commodity Futures Trading Commission Chairman Mike Selig will consider a token taxonomy and potential exemptions to facilitate on-chain movement and transactions. On CAT costs, the SEC cited a reduction of the originally approved 2025 CAT budget, which included approximately USD 249 million in annual operating costs, by about USD 92 million during the year, alongside amendments expected to save roughly USD 7–9 million annually and additional self-regulatory organization proposals to reduce costs further; the testimony also noted SEC approval of the Public Company Accounting Oversight Board budget of USD 362.1 million, a 9.4% decrease year on year. On enforcement, Atkins pointed to cases involving offering fraud, insider trading, accounting and financial fraud, and investment adviser fiduciary breaches, including the Division of Enforcement’s Cross-Border Task Force announced in the fall and trading suspensions since September in the stocks of 14 Asia-based issuers on evidence of potential manipulation.
U.S. Securities & Exchange Commission 2026-02-11
U.S. Securities and Exchange Commission chairman orders comprehensive review of the Consolidated Audit Trail and outlines Project Crypto with the Commodity Futures Trading Commission
SEC Chairman Paul S. Atkins, in testimony before the U.S. House Financial Services Committee, outlined plans to streamline public-company reporting, develop a federal framework for crypto markets, and refocus enforcement on fraud and investor harm. He highlighted a comprehensive review of the Consolidated Audit Trail, supported the CLARITY Act for digital assets, and noted significant cost reductions in the CAT and PCAOB budgets.