(Reuters) -Wall Street's top regulator remains capable of policing markets despite steep recent cuts to agency staffing, Paul Atkins, the newly installed chairman of the U.S. Securities and Exchange Commission, told Congress on Tuesday.

Hundreds of SEC staff since January have taken the Trump administration's early retirement and buyout offers, with key offices losing as many as one of every five employees, according to agency data.

The cuts have created unease among career staff and prompted concern the agency's reduced capacity could hinder its ability to prevent fraud and market turmoil.

"We miss their expertise but I think we have plenty of expertise there at the Commission," Atkins said, adding that some vacancies would have to be filled but this would allow younger staffers a chance at career advancement.

"I think it's good every once in a while to have a house cleaning."

Atkins also said savings so far from contracting cuts driven by billionaire Elon Musk's Department of Government Efficiency amounted to $9 million.

The agency is currently re-reviewing IT contracts to identify more possible cost savings in cooperation with DOGE.