State Financial Officers Foundation CEO joins chorus calling on SEC to crack down on CCP's 'malign influence' on US markets



Two dozen elected officials have come forward to recommend harsher rules against China and other foreign countries to protect U.S. markets.

Twenty-four state treasurers, comptrollers, and auditors submitted a letter urging the Securities and Exchange Commission "to make change to the qualifications for foreign private issuer (FPI) status by prohibiting any issuer based in a country designated by the United States government as a foreign adversary, including the People's Republic of China."

'There are significant risks for US investors in China-based companies, including Chinese companies’ roles in furthering the Chinese Communist Party’s “military-civil fusion” strategy.'

"This letter is a matter of common sense and urgency. Adversaries of America should not be allowed to exploit our markets. With China accounting for the largest share of opaque foreign listings, the Chinese Communist Party poses a direct threat to U.S. investors," Utah Treasurer Marlo Oaks said in a statement obtained by Blaze News. "The SEC must act decisively to protect American citizens."

The request to the SEC takes aim at the "most common foreign private issuer (FPI) filers" who "are no longer incorporated and headquartered in Canada and the United Kingdom, but rather are incorporated in the Cayman Islands with their headquarters in China."

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Paul S. Atkins, chairman of the Securities and Exchange CommissionPhotographer: Stefani Reynolds/Bloomberg via Getty Images

The secretary of commerce lists China, Cuba, Iran, North Korea, Russia, and "Venezuela's Madura regime" as "foreign adversaries."

This shift, the letter argues, underscores concerns that U.S. investors are not being protected: "There are significant risks for U.S. investors in China-based companies, including Chinese companies’ roles in furthering the Chinese Communist Party’s 'military-civil fusion' strategy and the risks that China-based issuers will violate the disclosure, auditing, or other antifraud provisions of the Securities Exchange Act due to the Chinese government’s actions to prevent transparency."

In a statement obtained exclusively by Blaze News, State Financial Officers Foundation CEO OJ Oleka said: "The SEC should accept these recommendations without delay. We already know the CCP will exploit every opportunity to spread its malign influence. At the very least, companies based in adversarial nations like China should have to follow the same rules and requirements as American companies. This is about protecting the American people from those we know mean us harm."

"FPI status allows select issuers to follow loose regulatory guidelines, and so it makes no sense at all to grant this relaxed status to issuers based in countries that are our adversaries, like China. The last thing we should do is make it easier for the CCP to wage its war on us," Oleka said in another statement.

Michael Lucci, founder and CEO of State Armor, emphasized the harm that the CCP has done to U.S. markets: "The Chinese Communist Party has infected the U.S. financial system with systemic risks that can no longer be ignored. They violate the disclosure, auditing, or other antifraud provisions of the Securities Exchange Act, and should no longer enjoy the privileges of being a Foreign Private Issuer in our markets."

Signatories include the treasurers from Arizona, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Utah, West Virginia, Wisconsin, and Wyoming; the auditors from Kentucky, Missouri, Montana, Utah, and Wyoming; and the comptroller from Indiana. Nineteen states are represented in the letter.

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Trump’s SEC pick would blow up Biden’s lawless financial agenda



The media’s narrative has done its job. Many Americans now see Donald J. Trump not as a reformer but as a symbol of corruption. That perception is both dishonest and deeply misleading.

The reality? The first 100 days of Trump’s second term leave no doubt about his goal: to reform and remake the federal government.

Reform should mean growing the economy, not growing the bureaucracy.

It’s about time. Too many unelected bureaucrats accountable to no one infest the federal government like roaches, wielding unchecked power over our lives, liberty, and happiness. They treat the mandate for reform as a nuisance. Their mission: obstruct Trump’s appointees and protect the status quo.

Organizations like the U.S. Agency for International Development and the Voice of America have deservedly drawn the president’s attention. But many others deserve the same scrutiny. One that stands out is the Securities and Exchange Commission, which repeatedly overstepped its authority during the Biden years, using vague regulatory powers to impose sweeping social mandates under the guise of financial oversight.

Trump tapped former SEC Commissioner Paul Atkins to fix it. As chairman, Atkins can be counted on to take a best-practices approach to administrative responsibilities and to ensure that the SEC conducts its mission as described by the law: “facilitate capital formation; maintain fair, orderly, and efficient markets; and protect investors.”

That’s a welcome clarification of responsibility. Gary Gensler, who ran the SEC for Joe Biden, was often accused of having a reach that exceeded legitimate bounds, as when, for example, he tried to regulate the market for precious metals.

Gold and silver are not securities. Neither are individual retirement accounts. Yet the Gensler-era SEC attempted to assert authority over companies offering precious-metals IRAs to individuals and families who wish to own gold and silver.

As the Heritage Foundation’s David Burton told the House Financial Services Committee in March 2024, “The commission is statutorily required to promote efficiency, competition, and capital formation by responsible participants in the capital markets.” Still, under the Biden administration, “it increasingly does the opposite.”

John Gulliver of the Committee on Capital Markets Regulation told the same committee that Gensler’s SEC had “an unprecedented rulemaking agenda that will radically redesign the regulation of our securities markets and will have a major impact on the cost of being a public company and investing in our markets.”

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Photo by Tom Brenner for the Washington Post via Getty Images

Atkins can and must guide the SEC away from such nonsense. As CEO of Patomak Global Partners, Atkins oversaw the development of best practices for managing digital assets. Congress should follow his lead wherever it may go, solidifying his reforms into law and preventing the agency from trying to regulate financial instruments that are not securities.

The overreach matters. The United States is in a race with China for cryptocurrency dominance. The winner gets to establish the terms under which everyone else must live. It’s no surprise that the SEC’s failure to establish what Burton called “basic rules for responsible actors to follow” undermines America’s ability to take the lead.

“I am not entirely sure whether this irresponsible failure to provide basic rules is a function of the limited understanding of those charged with regulating in this area or their desire to simply have no rules so that the commission can engage in regulation by enforcement,” Burton told the committee.

Regulation by enforcement doesn’t just stifle innovation — it cripples the economy. It may also violate new limits the U.S. Supreme Court just imposed on federal agencies in Loper Bright Enterprises v. Raimondo, which ended the Chevron deference doctrine.

But Atkins can’t fix the SEC alone. Congress must step in and rewrite the law to bar the commission from using backdoor tactics to seize authority over emerging markets and financial technologies.

If lawmakers fail, they’ll guarantee a future where financial technology innovation gets strangled in red tape while real fraudsters skate by untouched. That’s bad news not just for entrepreneurs, but for America’s investors — roughly half the population — who rely on strong markets to secure their retirements.

Reform should mean growing the economy, not growing the bureaucracy. With Atkins at the helm, the SEC finally has a chance to get back to doing what it was meant to do.

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Alaska Airlines receives ‘initial’ $160M from Boeing after mid-flight panel blowout — additional compensation ‘expected’



Boeing paid Alaska Airlines $160 million following the mid-flight door panel blowout incident that occurred earlier this year, the airline stated on Thursday.

In a recent United States Securities and Exchange Commission filing, Alaska Airlines reported that Boeing provided the "initial compensation ... to address the financial damages incurred as a result of Flight 1282 and the 737-9 MAX groundings."

In January, Flight 1282 experienced a mid-air door panel blowout that forced the plane to make an emergency landing. Multiple investigations were launched as a result of the incident. The Federal Aviation Administration briefly grounded 171 Max 9 airplanes while inspections were underway, causing thousands of flight cancelations.

A preliminary report from the National Transportation Safety Board found that all four bolts designed to secure the panel in place were missing from the aircraft. Records revealed that before the plane was delivered to Alaska Airlines, it underwent rivet repairs that required the panel to be temporarily removed and reinstalled upon completion. The repair work was completed by Spirit AeroSystems, a former Boeing subsidiary, before the aircraft was returned to Boeing's Renton, Washington, facility.

The NTSB continues to investigate the incident. The Department of Justice also launched its own investigation.

Alaska Airlines' SEC filing stated that the company lost approximately $160 million in the first quarter of 2024 due to the mandatory grounding of some of its Boeing planes.

"As a result of the Flight 1282 accident and the Boeing 737-9 MAX grounding, we lost approximately $160 million in Q1 pretax profit, primarily comprising lost revenues, costs due to irregular operations, and costs to restore our fleet to operating service," the airline wrote.

Boeing paid Alaska Airlines the compensation in cash during the first quarter.

"This cash payment is equivalent to the lost profits resulting from the accident and grounding in Q1 2024. Additional compensation is expected to be provided beyond Q1, the complete terms of which are confidential," it added.

Boeing referred to statements made last month by CFO Brian West when contacted for comment, ABC News reported. During the Bank of America Industrials Conference, West remarked that there will be "customer consideration that is going to manifest itself in the quarter."

"We've got to take care of that and we're well down the road to do that. And we continue to stand behind our customers with that responsibility," West added.

The mid-flight panel blowout ignited a safety scandal for Boeing, prompting a management shake-up. In February, Boeing removed Ed Clark, the head of its 737 Max program. In March, it announced that CEO Dave Calhoun would leave the company at the end of the year. Boeing Commercial Airplanes CEO Stan Deal announced his immediate retirement last month. Larry Kellner, board chairman, is set to resign and not seek re-election in May.

Last week, Calhoun stated, "The eyes of the world are on us, and I know that we will come through this moment a better company."

"We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do," he said.

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