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Trump Nominates Paul Atkins as SEC Chair

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Trump Nominates Paul Atkins as SEC Chair
  • Donald Trump has nominated former SEC commissioner Paul Atkins to lead the agency.
  • The crypto industry has welcomed the president-elect’s choice.

U.S. President-elect Donald Trump has officially nominated Paul Atkins as chairman of the SEC. The politician announced this on his social media platform, Truth Social.

“Paul is a proven leader in common-sense regulation. He believes in the potential of robust, innovative capital markets that meet investors’ needs and provide capital to make our economy the best in the world,” Trump stated.

He also highlighted Atkins’ understanding of digital assets. Atkins is a board member of the non-profit organization The Digital Chamber, which promotes and lobbies for blockchain technology, bitcoin, and other cryptocurrencies in U.S. political circles.

Source: The Digital Chamber.

From 2002 to 2008, Atkins served as an SEC commissioner, where, according to Trump, he “strongly advocated for transparency and investor protection.”

After leaving public service, the candidate founded and led the consulting firm Patomak Global Partners, whose clients include blockchain industry representatives. 

“We advise leading crypto companies on risk management and regulatory compliance when launching innovative products. We also serve as trusted advisors to traditional financial firms and Fortune 500 companies on leveraging digital assets for growth,” states the firm’s website.

According to media reports, Atkins met with Trump for an interview earlier this week. Journalists’ sources indicated that the entrepreneur is not attracted to the SEC chair position due to the workload ahead. He believes the bloated federal agency requires significant reorganization following a period of ineffective leadership under outgoing chairman Gary Gensler.

House Financial Services Committee Chairman Patrick McHenry noted that Atkins has “the expertise and experience needed to restore faith in the SEC.”

“I’m confident his leadership will bring clarity to the digital asset ecosystem and ensure U.S. capital markets remain the envy of the world,” the congressman added.

House Majority Leader Tom Emmer also mentioned Atkins’ experience in both the public and private sectors. According to him, the future SEC chair understands that “regulation by enforcement” is a losing strategy that has stifled innovation in the U.S.

Atkins’ nomination is subject to Senate approval, which will be controlled by Republicans following the midterm elections.

Senator Cynthia Lummis called the nomination of the new agency chair “a huge win for financial innovation.”

Community Reaction

SEC Commissioner Hester Peirce, known as “Crypto Mom,” welcomed Trump’s choice for the agency’s leadership.

“We have a lot of work to do at the SEC to advance free markets, capital formation, investor choice, and innovation. I’m delighted that Paul Atkins will be returning to lead the effort. Having worked for him during his last stint at the agency, I cannot think of a better person for this position,” she wrote.

Her opinion was fully endorsed by Coinbase co-founder and CEO Brian Armstrong.

John Reed Stark, president of John Reed Stark Consulting, noted that amid Atkins’ nomination, current chairman Gensler quietly promoted three SEC specialists. All were involved in enforcement actions against crypto projects.

“The reality is that the battle for cryptocurrencies seems set to begin after January 20. So be ready for World War III from day one, Chairman Atkins, because these three lawyers now in power are among the best in the business and won’t give up easily,” Stark warned.

Gemini co-founder Cameron Winklevoss called Atkins an excellent choice to lead the agency, which “desperately needs a reset.” The entrepreneur expressed hope that the new chairman will adhere to a “do no harm” approach to the crypto industry.

Binance’s U.S. division also welcomed Atkins’ appointment.

“We believe that his integrity and reputation as a fair and sound judgment make him an exceptionally strong advocate for digital assets and the interests of American consumers,” stated Binance.US.

Ripple CEO Brad Garlinghouse expressed hope that the new chairman will bring “common sense” back to the agency and end the “era of crypto prohibition.”

Back in December 2020, the company began a legal battle with the SEC. The lawsuit, accusing it of violating securities laws, was filed under Jay Clayton’s leadership.

Coinbase, Gemini, and Binance faced agency claims during Gensler’s tenure.

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