SEC Chairperson: SEC Should Allow Settlement Entities to Submit Settlement Proposals for Enforcement Actions and Related Waiver Requests at the Same Time

Paul S. Atkins, chairperson of the Securities Exchange Commission (SEC), released a statement on the Commission's simultaneous consideration of settlement proposals and related waiver requests. Atkins believes one area that needs to change is the way the Commission evaluates settlement proposals in its enforcement actions, which are accompanied by the Commission's requests for waivers to automatically disqualify, as well as other incidental consequences of related enforcement actions.
In consultation with the Department of Enforcement, the Department of company finance, and the Department of Investment Management, I believe that the Commission's past practice of allowing a settlement subject to submit a settlement proposal for both an enforcement action and a related waiver request should be restored. This useful practice, which promotes fairness and saves Commission resources, was unfortunately changed by the previous administration. This approach will increase the efficiency and certainty of the settlement process and avoid internal consideration of matters in isolation, which are key factors in reaching a comprehensive settlement in the best interests of investors.
According to a report this morning, Paul Atkins responded to the issue of conflicts of interest in the cryptocurrency sector at the Georgetown University conference. Atkins said that the SEC "will enforce the law as necessary," while revealing plans to introduce an "innovation exemption" policy by the end of the year to accelerate the marketization of on-chain products and services.