SEC Chair Reflects on Tenure, Highlights Role of Capital Markets and Competition

Delivering what could be his final public address as Chair of the Securities and Exchange Commission (SEC), spoke on the pivotal role of capital markets, competition, and regulation in sustaining the U.S. economy. Addressing the ABA Business Law Section’s Federal Regulation of Securities Committee, he underscored the SEC’s mission to safeguard investors and ensure fair, efficient markets.

The Role of U.S. Capital Markets

Chair emphasized the unparalleled scale and importance of the U.S. capital markets, valued at $120 trillion, which account for more than 40% of global markets despite the U.S. comprising just 24% of the global economy. He highlighted how the capital markets drive economic growth, facilitate financing, and provide alternatives to traditional banking, noting their ability to allocate risk effectively.

“Finance is about pricing and allocating money and risk. The U.S. capital markets are the world’s largest, supporting investors, issuers, and the broader economy,” he remarked.

The Value of Competition

The Chair described robust competition as essential to maintaining market efficiency and lowering costs for investors and issuers. He noted the SEC’s vigilance against market concentration, which can stifle innovation and inflate economic rents.

“Competition drives efficiency, innovation, and fair pricing. It ensures that every participant—from kitchen table investors to corporate boards—benefits,” he said.

The SEC’s Mission and Modernization Efforts

Reflecting on his tenure, the Chair highlighted the SEC’s efforts to modernize regulations across market structures, disclosure frameworks, and corporate governance. Specific achievements included reforms to the $28 trillion Treasury market, updates to equity market rules, and reducing the settlement cycle to one day.

“Common-sense rules of the road—like those in driving or football—lower risk and build trust. They’re the backbone of resilient markets and economic growth,” he noted.

A Legacy of Service

In closing, the Chair expressed gratitude to the nearly 5,000 SEC staff members, praising their dedication to protecting investors and ensuring market integrity.

“This role has been an extraordinary privilege. Our work ensures that the U.S. capital markets remain a cornerstone of our nation’s strength and resilience,” he concluded.

The Chair’s reflections reaffirm the SEC’s commitment to fostering competitive, transparent, and well-regulated markets as critical drivers of economic prosperity.