Morning Wire – Chairman Paul Atkins on Restoring America’s Capital Markets

Podcast: Morning Wire
Hosts: John Bickley, Georgia Howe
Guest: SEC Chairman Paul Atkins
Release Date: December 7, 2025

Episode Overview

This episode features an in-depth discussion with SEC Chairman Paul Atkins following his headline-making speech at the New York Stock Exchange. The conversation centers on revitalizing America’s capital markets, addressing regulatory burdens, combating the politicization of financial rules, especially ESG mandates, and holding foreign entities—especially Chinese companies—accountable in U.S. markets. Atkin’s push is to “make IPOs great again” and restore Hamiltonian principles of free markets and individual liberty.

Key Discussion Points & Insights

1. Political Weaponization of Financial Regulation

[03:35 - 05:51]

• Chairman Atkins criticizes the previous administration for using SEC rules as “political weapon.”

• Cites the U.S. and China as the only major countries “trying to make cryptocurrencies illegal” via heavy-handed regulation.

  • Quote:
    “There were really only two countries in the world that were working to make cryptocurrencies illegal, and that's Communist China and the United States through the securities and Exchange Commission. So not a good sign.” — Paul Atkins [03:54]

• Atkins argues for adapting regulations to support, not stifle, technological innovation in financial markets.

• Example: FTX and LedgerX

  • Contrasts FTX’s collapse (offshore, less oversight) with U.S.-regulated LedgerX, which “didn’t skip a beat” and protected customers.
  • Quote:
    “That's an example of how responsible regulation and embracing financial innovation can lead to benefits for everybody.” — Paul Atkins [05:35]

2. The Shrinking Path to Public Ownership – The IPO Drought

[05:51 - 08:23]

• The number of public companies in the U.S. has halved in 30 years due to mergers, bankruptcies, and lack of new entrants.

• Barriers to going public:

  1. High regulatory compliance costs
  2. Litigation risks (especially from frivolous lawsuits)
  3. Weaponization of corporate governance by special interest groups
     • Shareholder proposals are increasingly used for social/political pressure, not economic focus.
  • Quote:
    “The idea is to make IPOs great again... to make it cool to be public again.” — Paul Atkins [06:23]
    “Shareholder proposals... have been weaponized over the years by politicized shareholder activists who are pushing social agendas.” — Paul Atkins [07:35]

3. ESG, DEI, and Special Interest Distraction

[08:23 - 09:10]

• Environmental, Social, and Governance (ESG) and Diversity, Equity, Inclusion (DEI) requirements are cited as sources of unnecessary burden and distractions from core business goals.
  • Quote:
    “So Environmental activists, social activists, that sort of thing is what we're talking about here...These are really more side issues and not central to what's important for the economics of the company. So they're distractions.” — Paul Atkins [08:31, 08:40]

4. Modernizing and Streamlining the IPO Process

[09:10 - 10:24]

• Atkins likens current SEC regulations to “a boat with barnacles”—outdated, cumbersome, and slowing progress.
• Commitment to reviewing the rulebook for relevance and trimming unnecessary rules.
  • Still, much of the process is stuck in a “paper world from the 1930s and 40s” and needs modernization for today’s markets.
  • Quote:
    “But there have been... we're still living in a paper world from the 1930s and 40s with our rule book and it's time to make it fit for purpose for the 21st century.” — Paul Atkins [10:09]

5. Restoring Hamiltonian Principles

[10:24 - 11:36]

• Atkins invokes Alexander Hamilton’s vision of America’s capital markets: free markets, individual liberty, and protection of private property.
  • Quote:
    “Hamilton basically stood for the power of free markets and individual liberty and choice... the protection of private property, the pursuit of livelihood and as they use the term happiness, which...was a concept of proper balance.” — Paul Atkins [10:34, 10:44]
• Argues current regulatory and cultural trends have led the markets away from these founding ideals.

6. Holding Foreign (Especially Chinese) Companies Accountable

[11:38 - 14:41]

• Discusses persistent loopholes allowing some foreign companies (notably Chinese) to list on U.S. exchanges without full compliance to American standards.
  • Many Chinese firms register abroad (e.g., Caribbean islands) but list in the U.S., exploiting “substituted compliance” and creating regulatory asymmetry.
  • These companies have sometimes been subject to stock manipulation (“ramp and dump” schemes).
  • Under Atkins, the SEC is increasing oversight, stopping trading of suspect stocks, and working closely with NASDAQ.
  • Quote:
    “But if the Chinese companies now they're listed in the United States, they should be under American regulation...But because of this kind of loophole in our laws, are not subject to that. We give them exemption from that. That's what we're looking at.” — Paul Atkins [13:08]
  • Action: About a dozen fraudulent companies have had their trading stopped under Atkins’ watch.

Notable Quotes & Memorable Moments

• “There were really only two countries in the world that were working to make cryptocurrencies illegal, and that's Communist China and the United States through the securities and Exchange Commission.” — Paul Atkins [03:54]
• “That's an example of how responsible regulation and embracing financial innovation can lead to benefits for everybody.” — Paul Atkins [05:35]
• “The idea is to make IPOs great again and to make it cool to be public again.” — Paul Atkins [06:23]
• “Shareholder proposals... have been weaponized over the years by politicized shareholder activists who are pushing social agendas.” — Paul Atkins [07:35]
• “Hamilton basically stood for the power of free markets and individual liberty and choice.” — Paul Atkins [10:34]
• “But if the Chinese companies... are not being regulated in their home country... they should be under American regulation. But because of... loophole in our laws, are not subject to that. We give them exemption from that. That's what we're looking at.” — Paul Atkins [13:08]

Timestamps of Key Segments

• [03:35] — Atkins introduces the dangers of politicized regulation and crypto policy
• [05:51] — The shrinking population of public companies and obstacles to going public
• [07:35] — “Weaponization” of shareholder proposals and special interest activism
• [08:31] — The role of ESG and DEI in distracting companies from shareholders’ interests
• [09:20] — Modernization needed for the IPO process and SEC regulations
• [10:34] — Hamiltonian vision for American capital markets
• [11:38] — Regulatory loopholes and risks of Chinese companies on U.S. exchanges

Conclusion

SEC Chairman Paul Atkins delivers a robust defense of free-market principles, called for regulatory rollback and modernization, and laid out plans to clamp down on political activism via corporate governance mechanisms. His approach aims to lower IPO barriers, encourage innovation, and ensure a level playing field for all, including foreign (especially Chinese) companies wanting access to American capital.

“The question before us is not whether our entrepreneurs have the capacity to reinvent and reinvigorate our capital markets, but whether we as regulators have the will.” — Paul Atkins [01:46]

This episode provides clear insight into the policy direction of the SEC under Atkins, the obstacles facing American capital markets, and the regulatory reforms ahead.