SEC Chair Paul Atkins argues U.S. states should take the lead in regulating corporate behavior, signaling a shift toward lighter federal oversight. Atkins emphasized this stance during a Miami conference hosted by the Texas Stock Exchange, which aims to position Texas as a business-friendly alternative to Delaware. He criticized the SEC’s past efforts to impose governance standards through disclosure rules, insisting regulators “must stay in our lane” as a disclosure agency. Texas and Nevada have emerged as top destinations for companies like Tesla and Coinbase, which relocated their incorporations amid Delaware’s perceived hostility toward founder-led firms.

Atkins’ approach contrasts with recent Trump-era actions, such as suing states over prediction markets, and rejects federal uniformity in fiduciary duties. Critics warn reduced litigation access could undermine shareholder protections, but Atkins insists the SEC will “shield innovators from frivolous claims while protecting investors from fraud.”.