We will hear testimony on the nomination of jay clayton be secretary of the Exchange Commission. Extensive command experience as a securities lawyer. For decades he has helped Companies Access cap bull the ability tose invest in the United States and grow and create jobs. One area he is already indicated he will focus is cap formation. Drive innovation and job creation and access is the lifeblood of our economy. The jobs act helped revitalize markets published in the fec should find ways to help companies go public and allow their investors to share in their success. Recently this committee marks of several bipartisan securities bill and we encourage you, if confirmed, to identify other security areas which could help legislative improvements. The sec has an important threepart mission. Protect investors, maintain efficient markets, and facilitate Capital Formation. Each part of the mission is equally important and should not come at the expense of the other. I raise this because the sec mission is critical to every u. S. Citizen and retiree. Investors should be able to participate in markets unfair fighting so that they can pay for the events such as college and save for retirement. We have help investors make sure to makee material informed decisions. I repeatedly stressed the need for the u. S. Financial system at its market to remain the preferred destination for investors. Throughout the world. The sec has an Important Role to that end i look forward to hearing more from you and how we can help companies grow. Americans get hired and investors share in the creation by these companies. Stock market rules and regulations are still important. Given that most of them commented in a time when technology was much less advanced. It is imperative that these rules serve the needs of companies and investors. Retrospective reviews of its own anna so ensure they are acceptable. This is in line with the president executive orders on the Economic Growth and regulatory paperwork brockton act which statutorily mandated review and evaluation of to identify which are outdated, unnecessary, or unduly burdensome. While technically the sec is not subject to a group of, your predecessor indicated before this committee that she was very much committed to reviewing the rules and that fashion. Thais one that many would like us to select and we continue. Additionally it is formed for the sec you have robust echo thefit analysis importance of costbenefit analysis and an executive order. Forward to hearing from you today on these issues as well as with you hope to prioritize you read the sec. Congratulations on your nomination and think you and your family for your willingness to serve. I appreciate your Public Service. All of us know some of the demand that was on your beautiful family and thank you for your willingness to stand up and be here. , as nominee hearings we discussed a number of points that are still relevant today. Even if technology has changed how the markets work. How do we improve Investor Protection . How do we strengthen the rules reliable statements . How do we better enforce violations of raw law . President trump understood the American People are tired of the continual use of misbehavior on wall street with minimal accountability. To ar ago candidate from site of a standard for the little guy speech by teddy radarelt and the home of whom of my staff told me nobody age of 50 will not what im talking about. Promised the people to whom he said he knew wall street, the people of wall street, and will not let wall street get away from murder. The audience at that speech wod be surprised to learn that the president has picked Goldman Sachs alumni to run the National Economic council, to occupy the top two jobs at the treasury and has told just turns to outside counsel to run the fec. Knew,ndidates Americans College bills are government on a home, they are more skeptical and less trusting of the markets. Whether it is another flash crash, the billiondollar ponzi scheme, a trillion Dollar Financial crisis, people worry about testing the market with their hardearned savings. Thats what you wanted to. At a time when we are actually debating whether Retirement Advisors should put our clients interest first, think about. We debate here whether Retirement Advisors should put their client interests first. It is hard n to see why people feel that way. Before neri fears were not enough, in recent years we have witnessed a significant financial risk of hacking and cybercrime as well as cyber change Climate Change. The insistence for removing protections against fraud and abuse grows louder and more these, collective amnesia swept across his body. Recse we do not spend the two hours discussing issues that you agree are important only to see those issues ignored if youre confirmed. You spend your career protecting some of the biggest names on wall street. Those relationships pose a host conflicts for this position. Your record representing banks and bankers and hedge funds and executives speak for itself. Already wellare represented among the president s friends, supporters, advisors, and far too many in all three branches of government. Automakers in morning, ohio, steelworkers and canton, ohio area private equity or a hedge funds to control their company, hastily ship jobs overseas. Benefits of grown smaller over the best smaller of the is because management care more about pleasing wall street and having their profits and bottom lines and is doing right by working people. Executive thank you going up and up and up. Workers nearing retirement have had their pension and health care . As one of the disclosure of corporate political spending some of the anticorruption efforts runs National Resources and Mining Industries, i could ofon and on and on and on the special interest influence in his body and administration. Thats why ill those rules are so important. A lot of ground cover, i do not get to all my questions here at it like college will do the same. I know my colleagues will do the same. Thank you again for your willingness to serve. Will now rise and take your right hand . Do you swear or affirm that the testimony youre about to give it the truth, the whole truth, and nothing but the truth so help you god . Thank you. Do you agree to appear and testify before any duly constituted committee of the senate . Thank you, take your seats. A written statement will we make in made a part in entirety and i give you my congratulations on your nomination. Before you begin your statement to the committee you may, if you choose, it is the members of our family. I see you at the beautiful family with you. I will do that. Father, walter clayton, my mother, catherine clayton. My wife, gretchen. My doctor, haley, jasper. My son wyatt. My youngest brother andrew and his wife rachelle. Were fortunate to have such a beautiful family and have them here with you. Mr. Placing you may perceive. Clayton i am honored to appear before you today as President Trumps nominee to chair the Securities Exchange commission. I want to thank you and your staff for the time youve spent with me. I have enjoyed and learned from our meetings. Our Capital Markets have farreaching and profound effects for every ameran. Making sure our markets are fair, open, orderly, and efficient and ensuring that thestors are protected is fundamental responsibility of the fec. I will take of this responsibility with energy and purpose. I pledge to work with my fellow commissioners, the fec staff, this committee, and many others who support and defend our Capital Markets. The importance of Government Service was instilled with me for a young age. Born, my after i was father shipped out to vietnam as a Second Lieutenant and my mother and i moved to her childhood home in pennsylvania. We lived with her parents and her for younger brothers. Grandfather, the eighth and last child of coal miners, a smalltown lower lawyer in Public Servant took a strong interest in me. We were great friends for 20 years. Remarkably for as far back as i can remember he took me to township meetings, real estate closings, and estate sales. These experiences, much more main street fan of wall street, made even lasting impression on me. When i enter the ninth grade we moved as a family for the last time to delaware county, pennsylvania area. I met new friends through sports. One of those friends was my best friend, my wife gretchen. We met 36 years ago and have been married for 25 years. I want to think russian for her encouragement, love, and support for herhen encouragement, love, and support. Plusg the course of my 20 year career as a transactional lawyer, it has been my privilege to work with leaders in the public and private sector. Including landmark transactions such as the Worlds Largest ipo as well is important transactions during the dark days of the financial crisis. My five years living and working in europe, whei worked on matters involving the laws and markets, no fewer than a dozen countries including france and turkey and switzerland, germany. Areworlds Capital Markets interconnected and more broadly that america is the greatest country. My work included counseling and Small Businesses and individuals. During my college and postgraduate years my mother and father operated a small warehousing and logistics business. I worked with them on various projects including lease negotiations, inventory systems design, and establishing a 401 k plan for employees. There were ups and downs and i learned firsthand the many challenges that small and mediumsized businesses face as well as their importance to our economy. Based on of experiences, nationally and internationally, on wall street and main street, i firmly believe that well functioning Capital Markets are important to every american. All americans should have the opportunity to participate in and benefit from the Capital Markets on a fair basis. Accurateing provided information about what they are buying when they invest. Is zero room for bad actors in the Capital Markets. Im 100 committed to rooting out any fraud and shave actresses in our Financial System. Undermining the harder confidence that is essential to the markets. Peoplee to the american that i will showed no favoritism to anyone. Last comment, for over 70 years, the u. S. Capital markets will be be in the of the world. Our markets have allowed our businesses to grow and create jobs. Markets have provided a broad crosssection of america with the opportunity to invest in that growth. Including through Pension Funds and retirement assets. In recent years, our markets have faced growing competition from abroad. U. S. Listing by nonus companies have slowed dramatically. Significantly, public Capital Markets are less attractive to business than in the past. As result of these development, Investment Opportunities for main Street Investors are more limited. Here i see meaningful room for improvements. With you, myo work fellow commissioners, in the fec pursue those improvements and in doing so i will always be vigilant to ensure the commission is that fast and protecting investors. Opportunity, this i look forward to receiving your advice and answering your questions. Four your statement and before i begin up like to remind the members of the committee that we will be working on a five minutes timeframe for each segment and i encourage members to honor that so all of our colleagues in have an opportunity to get the questioning in. You make it a question at the end of five minutes. If that happens i will allow you to be brief in your answers. First, you are highly regarded attorney. Receiving recognition for expertise in the security field. Some have raised concerns that your success and your former clients will create conflicts you quicklyld provide your thoughts on this issue . I have been fortunate to have a diverse experience as a transactional lawyer and a securities lawyer dealing with a number of participants in Capital Markets. Nationally and internationally. Offerings, mergers, acquisitions, regulatory matters, etc. As for as the extent of my practice and whether the recusal that would be required, the complex will impair my ability to act as chair of the Securities Exchange commission, i do not believe that they will do so. Ive discussed this at length with the fec commissions office and the office of ethics. This is not a new issue. There is a protocol in place for dealing with those matters. Most of poorly i believe that if i am recused, my fellow commissioner says that he will be able to handle matters ably and to a good effect. It seems surprising to me that a persons success in a field which we we are hoping to lead an agency can be a criticism. I appreciate your to admit to assure that complex will not in your Opening Statement, you discuss the initial topic offerings and the need to keep Capital Markets robust serving his interest and just for the economy. Can you notice the particular thoughts on how the fec can aid in this process custome process . I very much look forward to discussing this with my fellow commissioners and the fec staff using the onramp for the Public Market process. The companyn easing face. I mean making it less costly upfront to become a Public Company. It hasnt had it has had an effect on the markets. When i go to meetings were a company is considering whether to go public or not one of the first questions that is asked is is this an emerging Growth Company . If that has made it easier for companies to become registered Public Companies. The equity markets have seen a lot of change including products listed as one of the Technology Behind it and the investors participating in it. Your predecessor as well as the acting chairman as stated there is a need to review the current equity Market Structure. Such a review should be disciplined and conducted in a datadriven manner. What are your thoughts on continuing the review of Market Structure and what steps that the fec sec need to do . Apparent that technology continues to change our markets. That is something that will continue unabated. Technology responds. I believe that we need to engage in a constant assessment. As far as the specifics of the Market Structure, analysis that the commission has going on right now, i do believe that they should continue. Some of the questioning from you and your staff, become more familiar with that. I do believe we should continue examining Market Structure coming forward. I just want to let you know that as a conclusion of my five minutes. This is a very important issue to us and we look forward to receiving input from the sec analysis and deliberations. Thank you mr. Chairman. Given the administrations unprecedented business and in commercial entitlements and demonstrated lack of interest in transparency, we must focus on the potential conflicts of interest this creates for people like you administration nominees. The case of the sec, this is not hypothetical. In 2002 President Trumps casino beforeomeday sec this case settled he sent a letter to the Tire Commission asking for leniency. Following the settlement he sent a thank you note to the chair for personally talking to him and being fair. I want to some of those documents for the record. My question is this. With administration billionaires, any of whom we havent heard in the hearings have had multiple conflicts of , theest and ethical lapses business inersonal the Administration Official businesses. As i said my Opening Statement i will repeat and i will repeat. If im lucky enough to be confirmed im committed to showing no favoritism to anyone in this position. What members of the trumpet ministration or team did you can medicate with prior to be selected by the president . Members of the Current Administration or Transition Team i was asked by the Transition Team how i got introduced to this process. Onas asked for my thoughts the Capital Markets and things that could be done to improve Capital Formation. That was several members of the Transition Team to do that. I do not think that i would be sitting here today when i met with them. Going intolity of me Public Service was raised. I met with members of the Transition Team who screened , i met with mr. Primus and mr. Bennett bannon and was later nominated. Would you submit to the committee