Paul Atkins, President Trump’s nominee to Chair the SEC, is scheduled to appear before the Senate Banking Committee on March 27, as part of the formal Senate confirmation process.
Atkins’ appearance before the Committee comes more than three months after President Trump nominated him on December 4, 2024. According to news reports, Atkins’ confirmation hearing has been delayed while the Committee waited for financial disclosure paperwork stemming from the complexity of Atkins’ financial holdings.
Despite the delay, however, most anticipate that Atkins’ confirmation is still on track. The Committee consists of 13 Republicans and 11 Democrats.
Viewed as an experienced Washington insider known for his conservative stance and advocacy for deregulation, Atkins, if confirmed, is expected to bring a less aggressive regulatory approach to Wall Street. He has been a vocal critic of the outgoing SEC Chair’s rulemaking agenda, particularly those related to ESG disclosures, which Atkins said, “oversteps the Commission’s congressionally delegated regulatory authority.”
Atkins’ nomination has been welcomed by business, particularly the crypto industry which has been a key regulatory target under the former SEC Chair, who sued multiple crypto firms for alleged rule violations. Under Acting SEC Chair Mark Uyeda, the Commission already has dropped more than six enforcement actions against cryptocurrency companies and has paused investigations on others.
Atkins currently is CEO of Patomak Global Partners which he founded in 2009. Patomak is a Fintech and risk management consultancy, and according to its website, “has deep experience in helping financial institutions navigate the emerging risks and opportunities related to crypto-assets, market trends and public policy developments.” He also served as an SEC Commissioner from 2002 to 2008.
If Atkins is confirmed as SEC Chair, several changes are anticipated in enforcement priorities, including:
· Shift in Enforcement Approach: The SEC is expected to move away from aggressive enforcement actions, avoiding regulatory overreach.
· Pro-Crypto Policies: Atkins is known for his pro-crypto stance, which suggests a more favorable regulatory environment for digital assets. This could include revisiting or rolling back rules that were seen as restrictive under previous leadership, such as the Biden-era crypto custody rule.
· Focus on Clarity and Collaboration: The SEC may prioritize providing clearer guidelines, fostering collaboration rather than confrontation.
SEC Grants Easier Capital Raising Path
On March 12, the SEC granted a “no-action relief” response which is expected to broaden capital raising opportunities for companies and private funds.
The SEC response letter simplifies investor verification for Rule 506(c) private placements, paving the way for greater use of general solicitation and advertising to raise capital. Previously, Rule 506(c) saw limited adoption compared to Rule 506(b) due to its stringent verification requirements and associated risks. Rule 506(b) allows unlimited fundraising without general advertising, while Rule 506(c) permits general solicitation but demands accredited investor verification.
The new guidelines allow issuers to verify investors’ accredited status through written representations and high minimum investment thresholds ($200,000 for individuals or $1 million for entities), provided there’s no knowledge of misrepresentation. This new framework reduces compliance burdens and risks, while traditional methods remain available for smaller investments. With simplified compliance, issuers may now use Rule 506(c) to access a wider audience of accredited investors.
A bipartisan group in Congress is pushing a bill that would reinstate the immediate deductibility of certain R&D expenses that were available to companies prior to the 2017 JOBS Act.
The American Innovation and R&D Competitiveness Act of 2025 was introduced in the U.S. House of Representatives on March 10, and states as follows: “A taxpayer may treat research or experimental expenditures which are paid or incurred by him during the taxable year in connection with his trade or business as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction.”
Under a provision of the JOBS Act, starting in 2022, businesses have been required to amortize domestic research and experimental expenditures over five years and foreign research and experimental expenditures over fifteen years. The bill’s authors argue that the JOBS Act’s amortization rule increased tax burdens on U.S. companies, potentially limiting innovation and diminishing global competitiveness, especially in comparison to countries like China, which provide significant tax incentives.
The legislation calls for the elimination of mandatory five-year amortization and reinstates immediate expensing for R&E costs. It includes optional amortization over at least 60 months for certain expenditures, while excluding expenses tied to land acquisition, property improvement, or resource exploration. The bill also prevents duplicate tax benefits by adjusting Section 280C for companies claiming R&D tax credits. Importantly, its amendments apply retroactively to tax years beginning after December 31, 2021.
The restoration of immediate expensing is expected to bolster U.S. industries reliant on innovation, including technology, manufacturing, and pharmaceuticals. Reduced tax burdens would incentivize higher R&D investments, leading to advancements in technology, job creation, and sustained economic growth, according to its proponents. Business leaders and advocacy groups have expressed strong support, emphasizing that immediate expensing provides financial flexibility and fosters expansion of innovation efforts, helping American companies to compete globally.
The bill’s authors, Representatives Ron Estes (R-KS) and John Larson (D-Connecticut) first introduced the legislation in 2020 and again in 2023 with no success. Its current 68 co-sponsors are hoping that the bill will finally pass in this legislative session.
Weinberg Managing Partner Corey Fischer has once again been recognized as a Banking & Finance Visionary by the Los Angeles Times.
Corey will be featured in the LA Times business magazine, LA Times Studio, which will be distributed with the Sunday March 23rd edition of the Los Angeles Times.
The issue recognizes elite banking/finance and professional services advisors for their achievements and contributions to the industry.
DISCLAIMER:
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
