Atkins’ Diet for SEC in 2026 Includes Less Disclosure

The turning of the calendar to 2026 means it’s time for New Year’s resolutions. At the Securities and Exchange Commission, chair Paul Atkins may be embracing the spirit of “new year, new me” by vowing to cut back on disclosure requirements.

Trimming some of the so-called “fat” from the rulebook tops our assessment of the SEC’s priorities this year, based on remarks from Atkins near the end of 2025. Here’s more on that and the agency’s other resolutions for 2026.

Disclosure reform is job one.

In a speech at the New York Stock Exchange on December 2, Atkins expressed concern about the impact of disclosure requirements on listed companies, that he views as overly burdensome. He noted that the number of companies listed on U.S. exchanges had fallen approximately 40% between the time he left his previous position at the SEC in the mid-1990s and when he returned as chair last year.

“This decline was not inevitable—nor, is it now irreversible,” Atkins said. “While there are many SEC rules and practices that have amassed over the decades and are ripe for reform, perhaps none epitomize regulatory creep more so than the voluminous disclosure requirements contained in the Commission’s rulebook today.”

In a Wall Street Journal op-ed published the same day as his speech, Atkins said he wants to reassert “financial materiality” as the guiding principle for what companies should report. In practice, that entails whittling down the financial disclosure regime to provide “the minimum effective dose of regulation.”

Scaling disclosures to match company size.

Atkins indicated he believes disclosure burden has acutely strained smaller companies, which could account for the shrinking number of issuers in recent decades. His solution is to tailor disclosure requirements based on the size of companies. One of Atkins’ suggestions for scaling the requirements includes providing a two-year “on ramp” for companies after their IPOs to reach compliance.

It appears likely the SEC will also revisit the dividing lines between large and small companies. Noting that two decades have passed since the SEC evaluated the thresholds, Atkins described the lack of adjustments in that period as a “dereliction of regulatory upkeep.”

Backing away from executive pay?

The fallout from the global financial crisis of 2008 prompted intense scrutiny of corporate compensation packages and ultimately led to the adoption of disclosure rules related to executive pay. Critics and labor advocates have used data from the disclosures as fodder for attacks on the sometimes-lavish lifestyles of corporate executives whose annual compensation packages usually dwarf those of companies’ average employees.

It comes as little surprise, then, that C-suites would object to disclosure rules for their pay. Atkins, however, has floated a theory that the disclosure requirements have backfired, producing the unintended effect of catalyzing a run-up in executive compensation standards, rather than curbing them.

In the end, Atkins and the White House may need to assess the political risks of diluting compensation disclosures before pressing ahead with reforms.

Building a regulatory framework for crypto.

The future of cryptocurrency and digital assets – as in, ensuring a sustainable future for the crypto sector – became a key focus for President Donald J. Trump during his 2024 campaign for a second term in office. It remains so nearly a year after he took office.

To that end, Atkins has helped spearhead Project Crypto, a joint effort between a series of government agencies to develop useful regulations for digital tokens. Measures under consideration include an “innovation exemption” to give crypto purveyors temporary relief from regulations governing disclosure and compliance.

Will the SEC stick to Atkins’ resolutions this year, or will they be set aside, and potentially revisited on the agenda for 2027? Talk to us in 12 months.

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