In his words…SEC Chair Outlines 2026 Priorities-SEC Chairman Paul Atkins’ keynote addresses at various investor events this month provide insight into what policy and regulatory changes public companies can expect in 2026. Beginning with an appearance at the New York Stock Exchange (NYSE) on December 2nd, Atkins voiced his general concern about the shrinking numbers of publicly listed companies. He noted that when he first worked at the SEC in the 1990s, more than 7,000 firms were listed on U.S. exchanges. By the time he returned as Chairman in 2025, that figure had fallen by roughly 40 percent. Atkins argued that the decline has been fueled by “regulatory creep” in the form of voluminous disclosure requirements. He criticized decades of rulemakings that have produced annual reports and proxy statements so voluminous and complicated that investors “struggle to parse and understand it”. IPO Revitalization and Disclosure Reform Atkins said that one of his priorities will be to scale regulatory requirements based on the size and maturity of a public company. He pointed to the JOBS Act’s “IPO on‑ramp” as a model that created a new category of issuer called an Emerging Growth Company, which provided these companies with scaled-back regulatory requirements to ease the transition to becoming a public company. He suggested that newly public companies should be allowed to remain on the ramp for several years rather than being forced off after one. He said that doing so “could provide companies with greater certainty and incentivize more IPOs, especially among smaller companies.” Raising capital through an IPO should not be a privilege reserved for a few “unicorns,” said Atkins. “More and more, public investments are concentrated in a handful of companies that are generally in the same one or two industries. Our regulatory framework should provide companies in all stages of their growth and from all industries with the opportunity for an IPO, particularly an IPO that represents a capital raising mechanism for the company, instead of a liquidity event for insiders.” Executive Compensation Disclosure Also at the NYSE event, Atkins said that the SEC held a roundtable that brought together companies, investors, law firms and compensation consultants to discuss the SEC’s executive compensation disclosures and potential reforms. He noted the roundtable’s “universal agreement” that current disclosure practices are excessively long and complex, limiting their usefulness to investors. Tokenization Innovation At the SEC’s Investor Advisory Committee on December 4th, Atkins said that he’s asked SEC staff to recommend to the Commission ways in which it can use its exemptive authorities to allow for innovations in tokenization while it continues to work on long-term, durable rules of the road. In financial terms, tokenization is the process of converting ownership rights to real-world assets (such as real estate, art, stocks, or bonds) into digital tokens on a blockchain, creating secure, fractional, and easily transferable digital certificates of ownership that allow for more efficient, transparent, and accessible trading. These tokens act like digital shares, enabling fractional ownership and automating processes through smart contracts which streamlines transactions and reduces reliance on traditional intermediaries such as brokers and custodians. As part of his effort to bring innovation and modernization to the capital markets, Atkins believes that the tokenization of financial assets, including securities, “have the potential to transform our capital markets,” and would “give investors new choices”. He added “Today, our rules assume that securities are issued, traded, and managed through layers of intermediaries, which help to address risks like information asymmetry and operational friction. But as we consider the rise of public blockchains and tokenization, we must acknowledge that these technologies have the capacity to streamline not only trading but the entire issuer-investor relationship.” The far-reaching impact of his remarks became more clear when Atkins continued, “In other words, tokenization is not just about transforming how trades occur. It can also enable direct connectivity for proxy voting, dividend payments, and shareholder communications, reducing the need for multiple intermediaries in those processes as well.” “The SEC’s role is not to resist the market’s transition to on‑chain capital markets, nor to force it into legacy definitions, nor to push innovators offshore,” he continued. “Rather, it is to allow market participants to operate and innovate subject to clear guardrails that protect the public.” To read SEC Chair Atkins’ Remarks see: https://www.sec.gov/newsroom/speeches-statements/atkins-120225-revitalizing-americas-markets-250 https://www.sec.gov/newsroom/speeches-statements/atkins-remarks-iac-120425 A Moving ExperienceState Taxes Matter to BusinessCompanies that are weighing whether to expand or relocate their operations across the United States may find guidance in the Tax Foundation’s 2026 State Tax Competitiveness Index. (See link below for full report). “Taxes matter to business,” noted the Tax Foundation, which has been publishing the Index since 2003. “Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state’s economy.” At the bottom of this year’s rankings are, not surprisingly, New York (50), New Jersey (49), California (48), Connecticut (47), Maryland (46), Washington (45), Minnesota (44), Massachusetts (43), Vermont (42), and Hawaii (41). These states share common challenges: complex, nonneutral tax structures and comparatively high rates that make them unattractive for business investment. It’s interesting to note that the bottom three: New York, New Jersey and California have experienced notable business outmigration between 2023 and 2025, driven by high taxes, regulatory burdens and affordability issues. New Jersey illustrates the problem most starkly. That state burdens both individuals and businesses with the nation’s highest property taxes, the highest corporate income tax rate, and one of the steepest individual income tax rates. The state also levies an inheritance tax and aggressively taxes international income, creating a particularly hostile climate for firms. New York and California similarly impose heavy tax burdens that discourage new companies from locating or expanding. The state of Washington, despite lacking an individual income tax, ranks poorly due to its gross receipts tax system, which distorts business activity. Vermont, Massachusetts, Minnesota, and Hawaii combine high rates with complicated rules that add compliance costs and uncertainty. By contrast, the top 10 states demonstrate how streamlined tax systems can foster growth. Leading the list are Wyoming (1), South Dakota (2), New Hampshire (3), Alaska (4), Florida (5), Montana (6), Texas (7), Tennessee (8), Idaho (9), and Indiana (10). Many of these states benefit from the absence of a major tax. Wyoming and South Dakota levy neither corporate nor individual income taxes. Alaska and New Hampshire avoid both individual income and state‑level sales taxes. Florida, Texas, and Tennessee impose no individual income tax, while Montana has no sales tax. Idaho and Indiana, though levying all major tax types, still rank highly due to relatively simple and neutral structures. For a deep dive into the Tax Foundation’s report see: https://taxfoundation.org/wp-content/uploads/2025/10/26_STCI_Book_10-31.pdf Show the MathMATH Act requires IRS to Explain its Error NoticesPresident Donald Trump has signed the Internal Revenue Service Math and Taxpayer Help Act (IRS MATH Act), which requires the IRS to provide clearer, more transparent explanations when issuing math error notices to taxpayers. Each year, the IRS sends millions of math error notices to individuals and businesses, often adjusting tax liabilities without fully explaining the reasoning. Under the new law, the IRS must identify the specific line item being changed, show the mathematical adjustment, and inform taxpayers of their right to challenge the assessment within 60 days. Lawmakers say the measure will benefit individual taxpayers by reducing confusion and ensuring they understand why refunds or balances differ from expectations. For businesses, the law provides greater certainty in tax compliance, helping firms avoid costly disputes and freeing resources otherwise spent deciphering opaque notices. The law will level the playing field between taxpayers and the IRS, making it easier to correct errors and maintain confidence in the tax system. “Americans must show the math on their tax return, and now the IRS has to as well,” said House Ways and Means Committee Chairman Jason Smith. The IRS MATH Act was a bipartisan piece of legislation that passed both the House and Senate unanimously. It will take effect for returns filed in 2026, giving the agency time to redesign notices and implement new procedures. For more information: |
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