The Atkins Diet
What’s on the SEC’s Plate for the Next Four Years?
Paul Atkins, Donald Trump’s choice to lead the SEC, was sworn in yesterday. That gives Alphabet Soup the perfect opportunity to unpack The Atkins Diet—what will be on the new SEC Chair’s plate over the next four years?
The conventional wisdom says Atkins will usher in a sweeping deregulatory agenda. I think that view misses the mark. Instead, The Atkins Diet will feature a high-protein menu of new regulatory frameworks, while cutting out the empty carbs—the overextended and sometimes unworkable rules of the Gensler era. In other words, Atkins isn’t taking regulation off the table—he’s just serving a different meal.
If you want a seat at the table, contact Highland Global Advisors for counsel. Now, let’s take a look at what’s being cooked up at 100 F Street NE.
Appetizer – Crypto Regulation
Atkins' first course comes straight from the top. President Trump has given him clear marching orders: work with White House “Crypto Czar” David Sacks to develop:
“a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. The Working Group’s report shall consider provisions for market structure, oversight, consumer protection, and risk management.”
This is a sharp pivot from the Gensler-era SEC, which insisted that existing tools were sufficient. That approach—regulating through enforcement rather than clear rulemaking—discouraged innovation and created fear, uncertainty, and doubt for legitimate players in the space.
Let’s be clear: the Atkins SEC will add new regulation in the crypto space. This is not deregulation—it’s building a new regulatory architecture.
So, what ingredients should we expect?
Clear definitions of what constitutes a security (under SEC jurisdiction) and what falls outside (e.g., commodities, which are regulated by the CFTC).
Disclosure requirements for issuers and intermediaries in the crypto markets.
Registration pathways for crypto asset providers.
Custody standards and enforcement norms to clarify how crypto should be held and supervised.
If these elements come together thoughtfully, this could be a strong first course—and set the tone for the Atkins era.
Main Course – Retail Exposure to Private Assets
The heart of the Atkins agenda will likely be how the SEC handles growing demand for retail access to private markets. Atkins hasn’t shown his cards yet, but his fellow Republican commissioners have voiced strong support for giving everyday investors exposure to private equity, private credit, infrastructure, and other alternative assets.
The current thinking is about “exposure,” not necessarily direct access—a nuanced but important distinction. The SEC’s idea is that working Americans who are setting aside long-term savings for retirement do not need immediate liquidity and – just like current accredited investors – should be able benefit from the returns and diversification of private markets. How to facilitate that exposure is the Number 1 regulatory question in Washington today.
This is going to be a complex and politically charged process. The lobbying machine in D.C. is already at full throttle:
The mutual fund industry wants exposures to go through regulated funds.
The private equity industry is pushing for 401K account rules to be broadened to permit more privates.
Meanwhile asset managers of all flavors are striking deals—like the recent SSGA/Apollo partnership—to offer hybrid solutions.
Key questions the SEC will need to answer:
What’s the right level of private market exposure in retirement portfolios, across income levels and life stages?
What’s the best vehicle for delivering that exposure? (Target date funds are the current frontrunners.)
What regulatory changes are needed to make this possible?
Firms specializing in designing model portfolios should assist the SEC with data and insights on optimal private exposure levels for households.
If Atkins gets this right, this could be his defining legacy.
Dessert – AI in the Securities Markets
There’s less chatter here, but it’s bubbling beneath the surface: Does AI represent a fundamentally new layer of financial activity—or just a powerful tool within existing frameworks?
If it’s the former, it needs new rules. And that’s where the next chapter of the Atkins Diet may head.
President Trump has made clear that he wants the U.S. to be the global leader in AI. That likely means a “light-touch but bespoke” regulatory regime—providing clarity without crushing innovation.
JD Vance hinted at this approach during his recent speech in Paris:
“We’re developing an AI Action Plan that avoids an overly precautionary regulatory regime while ensuring that all Americans benefit from the technology and its transformative potential.”
Expect an AI framework to include:
Disclosure requirements for AI-driven market activity
Safeguards for consumer and investor protection
“Human-in-the-loop” standards to ensure accountability
Bottom Line:
Appetizer, main course, dessert—this is a full regulatory meal, not a starvation diet. Paul Atkins will be overseeing one of the most consequential SEC agendas in a generation. The big question: as he’s navigating the SEC through the new world of crypto, private assets, and AI, can U.S. public markets also be improved?
Let’s dig in.