Paul Atkins Unlikely to Lead SEC as Journalists Eye Other Candidates

Previously identified by the media as the leading candidate for the chair of the SEC, Paul Atkins has been interviewed by U.S. President-elect Donald Trump, according to CoinDesk citing sources.

However, insiders noted that Atkins is not attracted to the position due to the workload. He believes the bloated federal agency requires significant reorganization following a period of ineffective leadership under outgoing head Gary Gensler.

Similarly, former CFTC chairman Chris Giancarlo expressed that he no longer wishes to clean up the “mess” left by Gensler, as he had to do at the agency he led.

As for reports that I’m in mix to run @SECGov, I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess @CFTC and don’t want to have do it again. DC rumors that I’m interested in some #crypto role @USTreasury are also wrong.

— Chris Giancarlo (@giancarloMKTS) November 14, 2024

Atkins is the founder and CEO of consulting firm Patomak Global Partners, which specializes in strategy, risk management, and compliance. Its clients include cryptocurrency companies, though they represent a small part of its practice. 

From 2002 to 2008, Atkins served as an SEC commissioner. During that time, Mark Uyeda and Hester Peirce worked as his advisors. Both are now commissioners at the agency, showing a friendly stance towards digital assets.

According to CoinDesk, Atkins is closely associated with billionaire and Key Square Group hedge fund manager Scott Bessent, whom Trump has nominated for Treasury Secretary.

However, the CEO of Patomak Global Partners is reluctant to leave his business for the SEC chair role, at least until he has adequately prepared the firm for his departure, a source told the publication.

Other Contenders and Their Prospects

Another potential candidate for the regulator’s head is Teresa Goody Guillén, a partner at the law firm BakerHostetler. She has been involved in disputes with the agency, defending the interests of clients in the blockchain industry.

“Teresa is an excellent choice. Highly recommend!” stated Cardano founder Charles Hoskinson.

Her support has also been echoed directly or indirectly by other notable industry figures, such as Binance co-founder Changpeng Zhao.  

Guillén has called for the need to “make the SEC great again.”

Make The SEC Great Again. Make Crypto Great Again. Under President Trump, transformative change starts on Day One. #SEC must restore trust, engage with industry, and end regulation by enforcement. It’s time to knockdown needless obstacles, remove burdens, clarify #crypto rules,…

— Teresa Goody Guillén (@teresagoody) November 21, 2024

“It’s time to remove unnecessary obstacles, clarify crypto rules, and promote innovation. Protect investors and our place on the global financial stage. Bring cryptocurrency back to the U.S.,” the lawyer emphasized.

The potential nomination of former Binance.US CEO Brian Brooks for the agency’s head has also garnered support in the Web3 community. At the time of writing, users of the prediction platform Kalshi consider his and Guillén’s chances equal at 11%. Both trail significantly behind Atkins, who stands at 66%.

CoinDesk sources consider Brooks’ selection unlikely: the former acting head of the Office of the Comptroller of the Currency lacks experience in securities regulation.

Less Obvious Candidates and Community Assessments

According to Bloomberg, Trump’s transition team is considering former CFTC chairman Heath Tarbert for the SEC chair position. He currently serves as the chief legal officer at Circle, the issuer of the USDC stablecoin. The company declined to comment.

Another contender is former SEC commissioner Brad Bondi, who is considered crypto-friendly. However, critics point out that he is more of a traditional securities lawyer based on his previous work experience. His sister, Pam Bondi, has been nominated by Trump for U.S. Attorney General, and such ties to the administration could be a “trump card” for his appointment, CoinDesk suggested. 

According to Unchained, former SEC chairman Jay Clayton, nominated as Manhattan prosecutor, has strongly supported the candidacy of former agency lawyer Robert Stebbins. The crypto community has actively opposed such a choice.

Possible SEC Chair nominations of Atkins, Bondi, Gallagher and Stebbins — Who Are These Guys?

Kudos @EleanorTerrett, nice job on reporting the SEC Chair short list to us all — you are killing it as always. Atkins, Gallagher, Bondi and Stebbins are all highly impressive choices… https://t.co/RbPXtqtTzX pic.twitter.com/9TlE02Z5S3

— John Reed Stark (@JohnReedStark) November 16, 2024

“Stebbins personally signed, approved, and supported about 80 enforcement actions related to cryptocurrencies, including the most controversial of all — the SEC case against Ripple,” noted John Reed Stark, president of John Reed Stark Consulting.

In his view, major players in the crypto industry have gained significant political clout during the election campaign and will not allow such an unacceptable candidate to be appointed.

Gensler announced he will resign on January 20, 2025, the day of Trump’s inauguration.

Until the Senate confirms a new head of the agency, one of the two Republican commissioners — Peirce or Uyeda — may serve as acting chair. “Crypto Mom” has already indicated she is not interested in the chair position, either temporary or permanent. This increases Uyeda’s chances, but whether he will remain as head is unclear.

Noted industry lawyer Jake Chervinsky gave a low probability to both appointments in a discussion with Bloomberg analyst Eric Balchunas.

Very low, only because I don’t think she wants the job. I’d give decent odds to Uyeda, although I expect Trump may prefer to bring in someone new of his own.

— Jake Chervinsky (@jchervinsky) November 6, 2024

“I’d give Uyeda decent odds, but I expect Trump may prefer to bring in someone new of his own,” he stated.

CEO of the Blockchain Association Kristin Smith believes that the next SEC chair is the most crucial appointment for the industry by the future administration.

The next SEC chair is the most critical position for crypto @realdonaldtrump will appoint.

The chair must be a known quantity committed to undoing the damage of the last 4 years, have expertise on crypto–and share Trump’s vision of making the US the crypto capital of the world.

— Kristin Smith (@KMSmithDC) November 19, 2024

“The chair must be a known figure committed to undoing the damage of the last four years, have expertise in digital assets, and share Trump’s vision of making the U.S. the crypto capital of the world,” she emphasized.

As reported, the president-elect’s transition team plans to transfer some control over the crypto market to the CFTC, according to media reports.

The future administration is also considering creating a dedicated position focused on digital assets — a so-called “crypto czar.” Giancarlo is mentioned as a candidate for the role.