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With a robust pipeline of rulemaking set for the year ahead,
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I think it's instructive first to contextualize them
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in the years that they follow,
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a period in which our regulatory framework too often struggled
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to keep up with a market that it oversees.
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As just one example of the gulf between regulation and reality,
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our rules still default to paper delivery
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for shareholder communications.
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In an age of algorithmic trading and artificial intelligence,
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I believe that requirement ought to be a relic
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and not a standard.
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Second, and on that note,
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a refusal to update the SEC's rules
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prepared with a misguided regulation by enforcement campaign
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has killed many would-be products or driven them offshore.
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When innovators cannot discern fit-for-purpose rules
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or when they face the prospect of a subpoena
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as the response to good-faith efforts to comply,
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the rational response is to build elsewhere, and they did.
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An entire generation of digital asset innovation
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developed outside the United States,
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not because American entrepreneurs lacked the ambition
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or American investors lacked the appetite,
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but because American regulators lacked the will.
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Third, decades of a creative rulemaking
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have compounded into a compliance labyrinth,
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so elaborate that it sustains entire industries
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whose sole function is to help public companies
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to navigate the SEC's complex regulatory framework.
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When the cost of accessing America's capital markets
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includes retaining specialists to decode
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the SEC's regulatory regime to produce disclosure
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that only an academic would appreciate,
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then something is very clearly and deeply a mess.
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Our goal should be to increase the cost of fraud
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and manipulation, not the cost of compliance itself.
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So against that backdrop, every initiative
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towards which the SEC is working and every rule
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that we propose, every interpretation that we release,
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and every institutional reform that we undertake
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largely falls into one of three categories.
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Those that advance are rules to align
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with how markets operate today.
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Those that clarify our regulatory regime
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to streamline oversight and unlock innovation.
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And those that transform our requirements
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by eliminating both the burdensome and the impractical.
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So together, these three pillars of advance
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or A, clarify or C, and transform or T,
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form one integrated policy agenda
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that I'm calling our ACT ACT strategy.
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