SEC Chairman Paul Atkins: To bring IPOs back to the mainstream, we do not exclude private sale tokenization.

The Chairman of the SEC, Paul Atkins, was interviewed this morning on ( 7/2) regarding the sluggish IPO market, private equity tokenization, whether retail investors can invest in private funds and private credit, the SPAC phenomenon, and his views on Congress's internal transaction and information disclosure rules. He emphasized that the SEC's goal is to ensure clear regulation for market innovation and to make IPOs mainstream again.

How Atkins views the trend of private equity tokenization

Regarding the tokenized private equity that some operators have begun to allow retail investors to purchase, whether this investment practice circumvents SEC regulation and falls into a gray area is a topic of discussion. In this regard, Atkins stated:

"I don't think this is a backdoor approach, but rather a manifestation of innovation. The SEC should not obstruct market innovation by using 'enforcement instead of rules.' What we need to do now is to clarify the rules so that everyone knows how to proceed and how to innovate."

He added that the SEC is currently working to make IPOs easier and reduce red tape, stating:

"My goal is to bring IPOs back to the mainstream."

(Robinhood launches tokenization of stocks in the EU, allowing users to receive OpenAI and SpaceX tokens )

SEC Chair Identifies 3 Major Challenges for IPOs

Atkins said that many companies are not going public now because the thresholds and risks are too high. He cited the current 10-K financial report, which is so thick that even professionals cannot understand it. Much of the information disclosed is just for self-protection, fearing lawsuits, and it has become something that does not truly help investors understand the company.

He pointed out several directions for improvement that the SEC needs to take in the future:

Reduce legal liability risk

Reduce excessive disclosure and overly lengthy reports

Enhancing investor confidence in IPOs

The SEC is expected to reform the "accredited investor" restrictions.

Regarding the current regulation in the United States that requires an annual income of over one million dollars to invest in private equity, whether this excludes general retail investors from participation is a topic that may be replaced by "financial literacy tests." Atkins stated:

"The SEC is re-evaluating whether there are better ways to assess an individual's ability to invest in the private sale market, which is worth discussing."

He also reminds general investors to be aware that the private sale market is not as liquid as the public market, and the valuation methods are also more vague. It is essential to understand the risks before entering the market.

( Can retail investors also buy SpaceX? Republic launches tokenization of private equity, allowing low-cost investment in unlisted star companies )

Is the SEC going to review the side effects of the SPAC IPO downturn?

Speaking of the special purpose acquisition companies that were popular a few years ago, (SPAC), Atkins believes that this trend is partly due to the difficulties in conducting IPOs, prompting companies to seek alternative routes. However, he emphasizes that the SEC does not oppose SPACs, but merely wants to ensure that the structure is transparent and that information is adequately disclosed.

He also revealed that the SEC has already started discussions on how to redesign IPO rules to reduce the incentives for companies to use SPAC to circumvent the difficulties of going public.

Frequent internal trading in Congress, the SEC can't keep up.

The host then asked a sensitive question, which was whether members of Congress should limit stock trading. He directly named House Speaker Nancy Pelosi and pointed out that the stock return rate of her family is too high, raising suspicions about whether they have used their power to gain early access to sensitive market information.

In this regard, Atkins stated:

"The Congress has long passed the stock law, but its practical effectiveness still needs to be observed. The SEC receives thousands of insider trading reports every year, including those from the public, online, and internal whistleblowers, all of which will be investigated."

(Foreign media names 74 U.S. lawmakers for delaying the disclosure of their holdings, and the stock law has not constrained trading behavior for many years)

Information disclosure has entered the era of communities, and the SEC strives for fair trading.

The host mentioned that the ways in which companies disclose information are becoming increasingly diverse, including social media platforms, podcasts, and even Telegram groups. Should the SEC establish new regulatory standards? In response, Atkins stated:

"Market operations rely on information, and information is everywhere now. We will continue to observe, but the fundamental principle remains unchanged: we must ensure that all investors can access information fairly."

Atkins emphasized that he has only been in office for two months and has already begun collaborating with Congress and the White House to reform cryptocurrency, IPO, and SPAC regulations. He said, "You can't expect to build Rome in a day, but we will make progress step by step."

( Exposes Congresswoman Stock Goddess Pelosi's Latest Trades! Liquidated NVIDIA and Apple, purchased call options, Tempus AI surged over 30% after the news )

This article SEC Chairman Paul Atkins: To bring IPOs back to mainstream, does not exclude private equity tokenization first appeared in Chain News ABMedia.