Duval Times

Senator Rick Scott of Florida has issued a call for action to Paul Atkins, President Trump's nominee for Chairman of the Securities and Exchange Commission (SEC). In a letter issued today, Scott emphasized the importance of addressing the ongoing concerns with Chinese companies operating on U.S. exchanges, stating these entities have consistently failed to comply with U.S. regulations.

Scott expressed gratitude to both Atkins and the President for their dedication to safeguarding the integrity of American markets and investors. He noted his longstanding concerns about the risks that these companies pose, which he claims were insufficiently addressed by former SEC Chair Gary Gensler.

In the letter, Scott pointed to the Holding Foreign Companies Accountable Act (HFCAA) of 2020. This legislation mandates the SEC and the Public Company Accounting Oversight Board to identify foreign companies that fail to comply with audit inspections. If non-compliance persists for two consecutive years, the companies are to be delisted from U.S. exchanges.

Reports indicate that many Chinese companies continue to bypass these standards, raising potential risks for investors. The U.S.-China Economic and Security Review Commission identified 286 Chinese firms listed on U.S. exchanges, collectively valued at over $1 trillion, with 48 joining since January 2024.

Scott criticizes the Biden-Harris administration for not enforcing these regulations, suggesting it has allowed Chinese companies unfettered access to U.S. capital markets without adequate financial disclosures. He describes this as potentially harmful to American investors.

Before Atkins' confirmation, Scott seeks commitment to enforce financial disclosure requirements, citing the need for transparency in U.S. financial markets. He emphasizes that protecting American investors and maintaining market integrity should be a top priority for the incoming SEC Chairman.

The letter closes with Scott's readiness to discuss plans for enforcing laws that safeguard U.S. investors and financial markets post-confirmation.

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