Leadership and Regulatory Tone: Atkins Brings Deliberation to the SEC
The second quarter of 2025 marked the SEC’s first full quarter under new Chair Paul Atkins, bringing a clear shift in tone and regulatory approach. In contrast to the fast-paced, enforcement-heavy tactics of the Gensler-era SEC, Atkins has called for a return to “regular order” rulemaking. During our Q2 Regulatory Roundup webinar, panelists from Eversheds Sutherland broke down what this shift in direction means for financial services compliance leaders navigating an evolving regulatory climate.
Why it matters
Atkins’ approach signals a more measured, procedural path to regulation but this should not be mistaken for deregulation. By extending comment periods and considering cumulative regulatory burdens, the SEC under Atkins is encouraging a more collaborative rulemaking environment.
Key takeaways of an Atkins-led SEC
This shift challenges firms to move beyond box-checking and toward reasoned, risk-based compliance frameworks that can evolve alongside regulatory expectations.
Here are the key takeaways:
- The SEC will return to more deliberate rulemaking processes, with longer comment windows and greater industry engagement
- Atkins has emphasized the need to evaluate how overlapping rules may impact firms, particularly smaller issuers and alternative asset managers
- Policy changes will arise from formal processes (rule proposals and public input), rather than ad hoc enforcement actions
- Though the SEC saw a 15% reduction in headcount earlier this year, Atkins has signaled a restaffing effort may follow
"A key priority of [Paul Atkins’] chairmanship is obviously going to be to develop a rational regulatory framework for crypto asset markets."
What to watch
In addition to the new regulatory tone, firms should:
- Expect new or reintroduced rule proposals to be less prescriptive and more tailored to risk profiles
- The SEC may prioritize innovation and market efficiency — particularly for capital formation initiatives
- Anticipate slower enforcement momentum while the agency restaffs, but maintain a proactive posture: documentation, supervision, and adaptability remain essential
While Atkins isn’t emphasizing enforcement actions with the same fervor, firms are still expected to demonstrate strong compliance programs, especially those tailored to evolving technologies and market risks.
How Smarsh can help
The SEC’s return to a more measured, engagement-driven regulatory process gives firms space to build stronger, more sustainable compliance programs — but it also raises the bar. Expectations are shifting away from reactive, enforcement-driven responses and toward a proactive approach grounded in documentation, supervision, and adaptability.
For compliance leaders, that means investing in the infrastructure that supports long-term agility. The ability to confidently capture, retain, and review electronic communications across an expanding range of channels isn’t just a technical requirement; it’s foundational to a risk-aware, future-ready compliance posture.
As regulatory priorities evolve, so too must the systems and strategies firms rely on. At Smarsh, we’ve seen how the right data foundation can help organizations not only meet regulatory obligations but also gain deeper insights and respond to change with greater confidence. In a period of recalibration, that kind of resilience isn’t optional — it’s essential.
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