US Securities and Exchange Commission (SEC) Chairman Paul Atkins has said that the rapid growth of private markets, including private credit, does not pose a systemic risk to the broader financial system, signalling regulatory openness to expanded activity in the sector, according to a report by Bloomberg.
Speaking at a Managed Funds Association conference in New York, Atkins described private markets as “very important” and characterised concerns about hidden leverage or valuation reliability as minor “blips.” The remarks come amid growing scrutiny of the $1.7tn private credit market, which has expanded due to tighter bank lending post-2008.
Atkins also noted the Trump administration’s efforts to broaden access to private credit for everyday investors, including changes making it easier for 401(k) plans to allocate to alternative assets. Since taking office in April, Atkins has positioned the SEC to encourage private market activity, while rolling back previous regulatory proposals affecting both alternative investment firms and public companies.
