On April 10, 2025, the U.S. Senate confirmed Paul Atkins as the next Chair of the Securities and Exchange Commission in a narrow 52-44 vote. Atkins, a former SEC Commissioner and longtime advocate for deregulation and market discipline, takes the helm at a time of substantial institutional transformation—and increasing political scrutiny.
During his confirmation process, Atkins faced tough questions about the agency's recent reversals in crypto enforcement and the influence of the Trump administration on its priorities. But the most pointed pressure came from lawmakers demanding stronger action against Chinese companies listed on U.S. exchanges.
In particular, Senator Tim Scott conditioned his support for Atkins on a commitment to increase scrutiny of Chinese issuers, citing long-standing concerns about their lack of compliance with U.S. disclosure laws and audit standards. "Delisting and removal must be on the table," Scott warned, pointing to companies that have allegedly evaded U.S. oversight for years while continuing to raise capital from American investors.
Atkins responded by pledging to act decisively, which helped secure his confirmation. As a result, the Commission is now expected to revisit long-standing enforcement questions related to foreign registrants, particularly those domiciled in jurisdictions that limit access to financial records—chiefly, the People's Republic of China.
This effort, if aggressively pursued, could become one of the largest enforcement undertakings in SEC history. Over 250 Chinese companies, representing more than $1 trillion in market capitalization, are listed on the New York Stock Exchange and Nasdaq. Delisting even a portion of these entities would not only carry geopolitical implications, but also reverberate through U.S. capital markets and investor portfolios.
From a legal and regulatory perspective, the key issue is accountability. U.S. securities laws require a basic level of transparency and auditability for all public companies, regardless of where they are based. For years, Chinese issuers have operated under a carveout, citing national security laws that restrict the export of sensitive financial data to foreign regulators. Congress attempted to address this loophole in 2020 through the Holding Foreign Companies Accountable Act, but enforcement has remained sporadic.
With Atkins now confirmed, and bipartisan momentum building, the SEC may finally have the mandate—and the leadership—to take meaningful steps. That could mean increased collaboration with the PCAOB, stricter listing standards, or full-scale delisting proceedings for noncompliant issuers.
At Anderson P.C., we are closely monitoring these developments on behalf of clients with global exposure and cross-border compliance risk. While geopolitical enforcement is inherently complex, the broader principles—market integrity, transparency, and investor protection—remain constant.
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