Paul Atkins (left) speaks with then-SEC Chairman Christopher Cox during a House Financial Services Committee hearing on June 26, 2007 at the Capitol in Washington, DC. Atkins was an SEC commissioner at the time and is now the president-elect. Trump becomes the next Secretary of State. Mark Wilson/Getty Images North America Hide caption
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Mark Wilson/Getty Images North America
President-elect Donald Trump has nominated former Securities and Exchange Commissioner Paul Atkins to head the agency, according to a post on Truth Social on Wednesday.
Mr. Atkins served as SEC commissioner from 2002 to 2008 and is known for his pro-business stance. He is currently the CEO of Patmac Global Partners, a consulting firm with clients in the financial and cryptocurrency industries.
Mr. Atkins is also known as a strong supporter of cryptocurrencies, and if confirmed by the Senate, he could help shape key regulations for an industry that Mr. Trump has been eagerly courting.
“Paul has proven to be a leader in common sense regulation,” President Trump said in a post on his Truth Social. “He believes in the promise of robust, innovative capital markets that respond to investor needs and provide the capital to make our economy the best in the world. We also recognize that it is essential to making America greater than ever before. ”
Current SEC Chairman Gary Gensler has announced that he will resign on January 20, the day President Trump takes office. Mr. Gensler antagonized many in the crypto industry and on Wall Street due to the agency’s aggressive enforcement efforts during his tenure.
Mr. Trump’s selection of Mr. Atkins has raised concerns among some consumer groups that Mr. Atkins will be Wall Street’s new police officer, adopting a much looser regulatory approach.
Better Markets President and CEO Dennis Kelleher called Atkins “smart, experienced and capable” in a statement.
But Mr Kelleher also warned of Mr Atkins’ close ties to the business sector. “Unfortunately, he is a deregulation enthusiast and industry cheerleader, and as SEC Commissioner from 2002 to 2008 he supported the deregulation that contributed to the catastrophic crash of 2008.” he added, referring to the global financial crisis.
A new dawn for cryptocurrencies?
Atkins is seen as one of the leading candidates to replace Gensler, sparking excitement throughout the crypto industry.
Cryptocurrency prices have skyrocketed since President Trump’s election, with Bitcoin nearly exceeding $100,000 for the first time in history in late November, before falling back.
Just a few years ago, President Trump called cryptocurrencies a “scam” and told FOX Business that cryptocurrencies “have the potential for disaster.”
But he changed his mind. During this year’s campaign, Mr. Trump called for the United States to become the “crypto capital of the planet” by bringing in friendly regulators and eliminating the kind of harsh enforcement actions taken against the sector under President Biden. ” promised to do so. His family also has a financial stake in a cryptocurrency company called World Liberty Financial.
Current SEC Chairman Gary Gensler speaks at a meeting of financial regulators at the Treasury Department in Washington, DC, on May 10, 2024. Gensler, who said he would resign on January 20, has antagonized the crypto industry with his aggressive policies. Enforcement action. Andrew Caballero Reynolds/AFP via Getty Images/AFP Hide caption
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Andrew Caballero-Reynolds/AFP via Getty Images/AFP
The selection of Atkins, a prominent cryptocurrency backer, could help propel the industry further.
Atkins expressed concern about enforcement actions taken by the SEC against the domestic cryptocurrency industry, saying the actions could drive the industry overseas rather than developing within the United States.
Cryptocurrency critics are wary
Trump’s support for the cryptocurrency industry has alarmed critics of the industry.
Cryptocurrencies have a history of intense volatility, and the space has been plagued by scams and scams. These currencies are also believed to be widely used for illegal activities such as drug trafficking and support for terrorism.
The industry has also seen a remarkable implosion. FTX, once the world’s largest cryptocurrency exchange, collapsed in 2022. Its founder and CEO, Sam Bankman Fried, was convicted of fraud for stealing billions of dollars from customers. Bankman Freed was later sentenced to 25 years in prison.
In addition to appointing a crypto-friendly SEC chief, the industry could also benefit from a Republican Congress. Republicans are expected to control both houses of Congress by narrow margins. The composition of the next Congress will focus on the industry to defeat lawmakers seen as crypto skeptics, such as Democratic Ohio Sen. Sherrod Brown, the current Senate Banking Committee chairman who lost re-election in November. It was formed after spending millions of dollars. .
