Amaranth Advisors’ losses have not changed the mind of SEC Commissioner Paul Atkins. Atkins has long opposed the Securities and Exchange Commission’s hedge fund registration rule, and the HF manager’s meltdown suggests, “It looked like the system worked.” Speaking to reporters in Europe, Atkins says that’s proof there is no need for new regulations, noting that HF investors are “big boys and girls” who understand the risks associated with such investments, which service the economy with much-needed liquidity. Despite Atkins’ comments and other recent pronouncements opposing regulation, hedge fund managers may want to consider the impact of their votes in the upcoming midterm election. If the Democrats take control of the House of Representatives, Rep. Barney Frank (D-Mass.) is likely to be named head the House Financial Services Committee, and having introduced a bill earlier this year giving the SEC control over the industry, he reportedly would make HF regulation a top priority if he gets the job. This, according to Investment News, is striking fear particularly in the hearts of venture capitalists and private equity professionals, who feel whatever affects hedge funds can trickle down to them as well. “Right now, the [SEC] commissioners understand the difference between hedge funds and venture capital, but what happens five years from now,” says Mark Heesen, president of the National Venture Capital Association in an IN interview. “They might not see what the big deal is if venture capital is part of this.” Already, as long as they hold themselves out as investment advisers and have more than 14 clients, VC and private equity firms have to register, and as the p.e funds continues to grow in size, more of them will have to comply with SEC requirements. In the meantime, the House of Representatives passed the Hedge Fund Study Act introduced by Rep. Michael Castle (R-Del.) calling for a federal study of hedge funds. The Senate has not submitted its own version, but could vote on Castle’s version.