SEC Chairman Atkins is Making Funds More Affordable Here's How We Can Build on His Plan

WASHINGTON, Feb. 9, 2026 /PRNewswire/ -- The Investment Company Institute released the following article on LinkedIn:

We applaud Chairman Atkins's recent op-ed in the Washington Post for noting how modernization of the regulation of investment funds can help American families build financial security. Mutual funds are the primary way that around 130 million Americans—more than half of all American households—invest for retirement, education, and other life goals. Reducing avoidable tax friction allows investments to grow faster and last longer, directly supporting the goal of improving affordability and financial resilience for American families.

Chairman Atkins is correct to note that the U.S. Securities and Exchange Commission's decision to allow ETFs to operate as share classes of mutual funds is a landmark step forward—one that shows how investment innovation can translate into real benefits for everyday investors. By expanding access to the tax efficiencies associated with ETFs, Chairman Atkins is adding his voice to the call to remove tax burdens on long-term investors.

As the SEC helps make it easier for Americans to save for their futures, it will take time for the industry to operationalize these changes. Much remains to be done to implement ETF share classes, and ICI is helping our members prepare for this change, which could still take years. Furthermore, the beneficial impact of ETF share classes will only affect a portion of the more than 7,500 mutual funds in America. Most mutual funds will not be in a position to have ETF share classes.

Therefore, Congress should build on Chairman Atkins's actions and pass the GROWTH Act, which would immediately make all mutual funds more affordable and useful to American families.

The GROWTH Act would expand tax-efficient investing to all mutual fund investors, allowing households to defer taxes on reinvested capital gains until they sell, eliminating the "phantom taxes" that can erode long-term savings. This tax change increases investment returns for Americans.

The affordability challenge facing American savers is broad, and continued progress will require building on this momentum. Chairman Atkins deserves everyone's praise for advancing one solution that promotes investor prosperity while preserving strong market protections. Now is the time for Congress to act decisively with a broader and more permanent solution. By putting all long-term investors on a more level playing field, the GROWTH Act could help millions of Americans keep more of what they earn and invest more for the future.

If Congress can modernize the tax treatment of all investment funds, it will help Americans become better long-term savers and investors.

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SOURCE Investment Company Institute