Ranking Member Hoyer Remarks at the U.S. Securities and Exchange Commission Oversight Hearing

WASHINGTON — Congressman Steny Hoyer (D-MD-05), Ranking Member of the Financial Services and General Government Subcommittee, delivered the following remarks at the subcommittee's oversight hearing on the U.S. Securities and Exchange Commission:

Thank you very much, Mr. Chairman, and welcome Mr. Atkins – Commissioner Atkins – to the hearing. And thank you very much for taking the time to stop by my office.

Subsequent to our conversation, I talked to Gary Gensler, whom you know, and who had high remarks for you. That did not mean obviously, as you well know, that he agreed with your propositions, anymore than you agreed with his propositions, but he believes that – I assume what he thought – his father was a good friend of mine, and he’s from Maryland and I’ve known him for a long period of time.

So, I thank you for being here, and I thank you as the Chairman did, for agreeing to pursue, even though we may disagree, the fact that you’re highly perceived by your colleagues is important.

Today’s hearing on the Securities and Exchange Commission comes amid circumstances somewhat reminiscent of the time of the agency’s founding. Though not as dire as the great depression, there is a significant volatility and lack of confidence in our markets right now.

The Trump administration’s tariffs shocked the stock market and rattled U.S. bonds. The value of the dollar is down around the world. Could be good or bad in some instances. This past quarter, our economy shrank for the first time since the COVID-19 crisis.

In April, consumer sentiment slid to its second-lowest reading on record, with Americans rightfully fearing what rising costs from tariffs will mean for their finances and their families.

Trump’s trade agenda, paired with Republicans’ effort to explode the national debt by passing massive tax cuts for the wealthiest among us, led America to lose its perfect credit rating just last weekend. 

There are also growing concerns of market manipulation and insider trading related to Trump’s tariff pause announcement, when he said it was a good time to buy. It turned out to be a good time to buy, as he announced just hours later he was going to change his trade policy.

Today’s circumstances may be similar to those at the SEC’s founding, but I fear the agency’s response may not be. The SEC ought to address the current mistrust and fraud in our markets by better protecting investors and improving enforcement.

I had the opportunity to read your testimony, and I thought it was comprehensive and good. On page three, you said policymaking will be done through notice and comment rulemaking, not through regulation by enforcement. I think I understand what you mean by that, but I also am concerned as to the reduction that we have seen in enforcement monies. I’ll ask you questions about that.

The SEC, in my view, ought to address the mistrust and fraud in our markets by better protecting investors and improving enforcement, not reducing it.

I am concerned by the reports that the SEC has lost between 15 percent and 19 percent of its staff, including large reductions to its legal affairs, investment management, and trading and markets divisions, because of DOGE’s purge. 

Those cuts don’t save the taxpayer any money since SEC is entirely fee-funded. Although, as I understand your testimony, you may clarify that we are now down to zero per million because the budget is already paid for in the first five months. Is that what I read correctly?

These reductions will, however, make it harder for the SEC to enforce laws and regulations that keep our markets fair, orderly, and efficient. An absolutely essential part of your work.

Since Trump took office, the SEC has sought to dismiss numerous enforcement actions – including many with direct or indirect implications for Trump’s family’s or his own best financial interests. Chairman Atkins, I understand that many of these changes were put in to motion before you started your role a few weeks ago, although you were complimentary of those efforts in your statement. 

Many Americans share my concern that this overhaul weakens the SEC and, by extension, our markets.

We need to ensure, as you have said you want to do and as I believe you do want to do, SEC can do the job it was created to do – to restore confidence in our markets, to go after insider trading and corruption, and to protect American investors.

I look forward to working together with you to accomplish those objectives on behalf of the American people and our economy. 

Thank you, Mr. Chairman.

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