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The leaders of AIMA have written to new SEC chair Paul Atkins outlining their top priorities for the commission following the departure of Gary Gensler.
Here are three top priorities from the letter, which can be viewed in full here.
Support for innovation and capital formation
“The SEC can reestablish a regulatory environment that fosters competition, eliminates unnecessary barriers and promotes capital formation across both public and private markets,” said Jack Inglis, CEO, and deputy Jiří Król, also global head of regulatory affairs.
They added that a “fair, transparent and comprehensive regulatory framework for digital assets is particularly necessary to facilitate the next generation of financial innovation.”
Improve SEC functioning
“To improve regulatory transparency and foster more constructive oversight, the SEC should adopt procedural reforms that enhance communication and industry engagement. These include requiring Commission divisions to regularly consult with market participants, publishing examination manuals to clarify expectations and ensuring timely closure of examinations by notifying firms when they conclude and clearly stating any deficiencies in closing letters.”
Promotion of sound practices and financial stability
“We urge the Commission to adopt a balanced regulatory approach that promotes financial stability without stifling innovation or capital formation. This includes supporting nonbank financial intermediation frameworks that appropriately distinguish between different risk profiles and funding structures. In particular, we emphasize that private credit lowers the potential for systemic risk in financial markets because of its superior asset-liability matching, lower leverage levels and proactive loan management practices, all of which significantly mitigate liquidity and contagion risks.”
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