Exchange Commission Chair and we take you to that hearing now. [captions Copyright National cable satellite corp. 2023] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] fraudsters use Cyber Attacks and ai attacks to scam cyberspace. It is unfair Playing Field entrenching the rich of her hardworking americans. The sec has its work ahead of it to protect those families whose savings are in the market. Things have been moving too fast recently. We have all heard the complaints. Too many roles too fast too hard to comply with. Americas markets are the greatest in the world because we have strong Investor Protection and regulators that have worked to make sure we have transparent fair and honest markets that americans deserve. We know with regulators and lobbyists and politicians that do their bidding, ignore changes, and are slow to respond. This put us in the middle of a financial crisis in the past because financial funds ran wild. The sec managed tens of trillions of dollars for Pension Funds and Retirement Savers. Private equity fund alone controls somewhere between, i use this word in sparingly but this is incredible. 1520 of the whole Economy Private equity firms control that. All the american savings are controlled by the opec firms and theyve not been able to get much information of how their using peoples money independent audits, disclosure and conflict of interest by fund managers. Americans have been in the dark about all of it until now. The private funds rule will change that now and force them to tell them how much money the private equity firms are charging. No surprise that the groups that complained said this was too strong they waited only days before running to their venue of choice fifth Circuit Court of appeals. It is always the most extreme partisan circuit of america willing to dues shall interest bidding. Same playbook we see over and over with wall street corporate interest trying to use the courts to go around the public. What of these companies trying to hide . Trying to stop buybacks for one thing. That is why the sec buyback disclosure will provide muchneeded data on how they have these resources. Today other together they should encourage companies to stop throwing buybacks. They should start investing in their workers in innovation. Under your leadership, mr. Chair the sec took steps to implement safeguards under dodd frank. The first was proposing a rule or having interest conflict in the market. It sounds technical in the financial crisis of 2008 wall street banks bet against the u. S. Housing market and cost damage. The second requires companies to clawback compensation from executives viz. Committee is working to enhance accountability. And this is by a vote of 21 against two. I look forward to the recoup act passing and becoming law. The past year the sec advanced transparency by requiring companies to notify the market when they experience Cyber Attacks. We know this is a growing risk in the industry and now we know this is a standard and ensures policymakers know when the devastating acts occur. The sec is continuing to pursue enforcement action against scam artists and those that target vulnerable investing people will trying to get away with inside trading and crypto fraud. We know as we look ahead at emerging risk there is new technologies including Machine Learning in our and Artificial Intelligence. The sec has to put customers first when they use new technology. This committee will discuss the impact of ai on Financial Markets in the coming weeks. Im eager to see the sec finalize its Climate Disclosure rule. Last week this Committee Heard testimony about the challenges in the property insurance market. 50 built 51 billion 15 1 billion it puts workers at risk. Investors are demanding the information and they deserve to get it. We only need to look at the event in the Crypto Market the past year to see what markets black transparency what happens when markets black chair and see transparency. Lack transparency. Ftx was not the loan bad apple, it is just the most explosive example of problems in crypto. It seems like every day after that collapse there was another crypto insider taking advantage of people and another few Million Dollars loss. That is because the problems with ftx are everywhere in crypto. That is with customer money that was supposed to be safe. Ftx is the biggest and ugliest. For consumers it is millions of dollars gone. But some still flock to this to fund trafficking and human terrorism. We have to clean up and fraud. I am glad the sec is using is law to crack down on the abuse of this. And the economy and markets move forward and the sec must move forward adding americans first. Americans who work hard and scrimped to save for their family futures deserve to invest in markets that are fair, transparent, and honest. I look forward to how the sec is working to protect investors. Thank you. Thank you for being with us today. Ive been calling for this hearing since february 14 when the community headed committee had in overhearing it a lot happened since your last appearance last september. When it comes to the sec we had to wait a whole year to speak with you in person even when a company like ftx collapses we still have to wait. Timely correction to inquiries is critical for agencies to remain accountable to the American People. But this agency has fallen short on being transparent and responsive to the oversight. I have serious concerns with the way you are leading the sec the u. S. Economy and our Capital Market system is a global standard. One of our countrys greatest strategic independent advantages over our peers and adversaries. However, the United States can only retain these benefit if entrepreneurs innovate, lunch, and grow new job creating ventures. Americas Global Competitive edge is innovation and the American Experience to create. As sec chair your goal is to fuel the innovation in the marketplace and expand the ability of americans all walks of life whether that is building an air calf aircraft or farming in iowa. To access a large spectrum of Investment Options without these regulations we limit opportunities for our kids and our kids kids from being able to take control of their own financial futures. That is why it is especially troubling that under your leadership the sec failed to implement these progrowth rules. Instead your agency has turned out a seemingly endless Assembly Line of regulatory hurdles to Capital Formation and Market Access. Let me go through to those rules. First for compliance burdens of your proposed Climate Disclosure rule are expected to crawl drupal the cause of being a public company. That is just for one single rule. Your tax on private markets through the private funds rule will hurt Small Businesses and put small managers out of the market. Ultimately limiting opportunity for many in the local economy. Meanwhile, he proposed overall the equity Market Operations will harm Market Access for Retail Investors and increase terms cost capital especially for small and mediumsized businesses. Using several proposals aiming at working the Regulatory Regime with the open End Fund Industry including mutual fund. Used by millions of americans Retirement Savers while providing issues paperthin rationale for why these were needed. Despite it being labeled the role of Artificial Intelligence the paragraph emerging existing technologies and excel spreadsheets is beyond the sec scope. It will ultimately stifle innovation. Finally and i could go on with more, but your proposed revision to the current role for safeguarding customer asset are so overreaching you placed your fellow regulators at the cftc, the fed and treasury between a rock and a hard place. These proposals and rulemakings will have a tremendous effect on our Capital Market system. Under your leadership the sec has failed to conduct thorough analysis and look at the overall impact of these proposals. It has limited the time the public can have its time to analyze and comment on these rules and proposals. This is kind of like using all of your draft choices and forgetting about the offensive line. Rulemakings supported by Economic Analysis. It brings me full circle. Rulemaking must be done in a thorough transparent manner which includes responsiveness to congressional oversight including from the minority embers of this committee. The American People have a right to know what the government is doing and your agencys blatant refusal to respond to our constitutional mandated oversight to the American People. Your final thoughts before i close i think opportunity should be for all investors and it should. 19 policies open more doors for future generations and give americans in every corner of the united dates a chance to better their Economic Standing and build generational wealth. Its clear under this administration and your comment that regulation, not innovation, is the preferred medicine for every perceived policy injury. This should not be the case. I look forward to our discussion. Thank you. Chair please proceed. Thank you. Members of the committee. It will be good it is going to be back in front of you. Thank you for inviting me here today. My views are chair of the sec in not speaking on behalf of my fellow commissioners or the staff. For nine years the federal security laws and the work i have to oversee them as played a crucial role to the public in good times and times of stress. The Core Principles of regulation has contributed to economic success. It really has contributed to our economic success and geopolitical standing and this assess of our success of our Capital Markets. We served investors building for a Better Future and issuers on the other side of the market raising their innovation and ideas. Its about a 100 trillion Capital Market in total. Our mission is to protect investors on one side, facilitate Capital Formation on the other, what is in the middle . The markets fair orderly and efficient. The sec is also a cop on the beat watching out for your constituents. The dedicated staff and agency does extraordinary work of limited resources in the face of significant growth. More and increase complexity. The sec headcount shrank from 2016 through last year. We shrank. With congresses help, along with his committee, we just got back to a touch more than where we were seven years ago. Americans are blessed with some of the most sophisticated and largest Capital Markets of the world. We cannot take this for granted even a Gold Medalist must keep training. That is why we are updating our rules from the technology and Business Models for 2020. My written testimony shows these efforts and i am sure we will get to this role or that role crypto and the like. We are upgrading our roles to have efficiency, and integrity in the market. We do so to ensure that the markets work for issuers and investors rather than investors working for the market. We are working to lower costs, increase access, and have financial stability. Each proposal made is part of the mission laid out by congress. Our division of economic risk analysis provides robust Economic Analysis. And it considers the cost and benefit as well as the effects of efficiency, competency, and Capital Formation. We favored the input from the economic policies and the sec Legal Authority. The last two years we provide the public with ample time to comment with average of 70 days of time to comment from the time we put in a proposal and put it on the website. Since january of 2022 we put in a minimum of 60 days and as long as 100 days when posted on the website. When commenting closes we often continue to get additional comments through meetings that staff can consider as well. Based on the feedback we can consider possible adjustment to the proposal. The process takes 10 1224 months. During that period of time as we move to the possible adoption we only do so if we consider most comments. And we do so based on those comments make adjustments. The finalize 22 rulemakings we have made, nearly all of them have changed based on public back. Feedback. I am grateful to work alongside biz staff and fellow commissioners to moat the integrity and resiliency of the market. I look forward to taking the committee questions. Thank you there will be a huge turnout on both sides because of the interest in your work and holding you accountable and asking you questions. I will more than usual enforce the five minute rule. Thank you. I appreciate your courtesy. Chairman thank you for being here. You know as many of those know i am involved in production area culture agriculture. If i do not cut the crop the crop does not get cut. The question is this i wish we were all in the situation where we do not need access to capital but we need access to capital. I wish i were in a situation where i do not have to sell grain to multinational corporations and i believe we need regulation on them because i think they control the marketplace for too much but that is where we are unfortunately. Every once in while in the mail in i will get a survey of how much grain arrays and how much grain i have on hand, cattle, chickens, pins, horses it is a real pain in the butt and you do this over and over again. Surveys are not something i am crazy about im busy trying to make a living. We had previous conversations about making sure the proposed climate rule does not add a burden of requirements. To add an additional workload and pain in the neck i am being generous when i say that to Agricultural Producers who do business with Public Transit company which by the way is by far the vast mass majority of those in agriculture. I appreciate you being receptive to those concerns, but we have discussed previously in this hearing that it is not the commissions intent to have farmers or ranches in montana or any other state or other users having to report on goods that they sell him publicly traded companies. I want to make sure that still stands true, is that right . That is right. That is right. We oversee Public Companies. We are not a climate regulator we are a securities regulator. Right now to give you an example of the top thousand companies by market cap 80 of them a Climate Risk Disclosures. We are trying to bring comparability to that and we heard not just from you but many farmers and ranchers across the great land that a lot of small and Medium Enterprises say they do not want to fill out the surveys. I asked them to take a close look at the comments to make sure that we are only regulating the Public Companies and not somehow indirectly private companies. You are fully aware it will take more than your intent for this to happen. Ugly down of regulation is something that happens all the time. I just want to make sure it is placed Crystal Clear that people in production and agricultural will not be faced with these surveys. No i cannot prejudge a final rule it takes five of us to push out a final rule, but staff is heard these comments. Theres a thousand of them and i have asked staff to come up with solutions. Ok you answer my next question with that answer. Walk us through the company on emissions. What do you envision that would look like . Again because Public Companies currently report some Greenhouse Gas emissions that which they produce, scope one and as you called it scope three the supply chain, that is not as well developed currently. In our proposal we said that no private entity, farmers, ranchers, Small Businesses needed to report that. And the company if they reported it and they found the material they could estimate it. But we heard comments that that was not good enough you and others and that is what we are looking at about how we can find appropriate path forward. Again, about 80 of the top 1000 companies are currently reporting on climate risk. Over 50 plus percent are reporting scope one and to not scope one and three so we are looking at that. So we know these are created companies. A lot of family farms have incorporated but they are not publicly traded. That is correct in our jurisdiction is over those public registrants. With respect to the chairman i hope somebody gets into crypto that i would love to find out what you are doing to protect consumers. I yield. Im su