SEC Will Be Headed By Crypto Advocate Paul Atkins Under Donald Trump
U.S. President-elect Donald Trump announced that he will nominate Paul Atkins as the next chair of the U.S. Securities and Exchange Commission.
Trump revealed his decision on Dec. 4 via Truth Social. He commented on Atkins' awareness of crypto, stating that Atkins recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.
According to Trump, Atkins is a "proven leader for common sense regulations." Atkins supports strong and innovative capital markets that benefit investors and provide capital so that the U.S. economy can compete globally, he said.
Trump highlighted one of Atkins' roles in the crypto sector: his position as co-chairman of the Digital Chambers Token Alliance starting in 2017. Atkins also served as an SEC commissioner between 2002 and 2008. He is currently CEO and founder of Patomak Global Partners, a risk management consultancy firm.
Atkins has additionally served on the advisory board of the tokenization company Securitize since 2019, a role that Trump did not mention in his announcement. Securitize congratulated Atkins on the day of the announcement.
How Atkins Could Differ from Gensler
Atkins will replace current SEC chair Gary Gensler, who gained a reputation for heavy enforcement against the crypto sector during the Biden administration.
Atkins, by contrast, is expected to take an all-around lighter stance.
The Associated Press described Atkins as a highly conservative SEC commissioner with a strong free-market bent. Though he increased enforcement against certain types of fraud as a commissioner, Atkins objected to harsh penalties on companies accused of fraud and held that the strategy does not deter crime. Atkins also demanded transparency and cost-benefit analysis around new SEC rules.
Crypto industry members are hopeful that Atkins will treat crypto reasonably. Coinbase CLO Paul Grewal praised Atkins "commitment to balance" and called new SEC leadership a "sorely needed" change.
Blockchain Association CEO Kristin Smith called Atkins an excellent choice, highlighting the benefit of a "new perspective" based on Atkins' thorough understanding of the crypto ecosystem.
Some critics believe Atkins handling of crypto will be too relaxed. In a statement quoted by the AP, Democratic Senator Brad Sherman argued that Atkins may hold that "no cryptocurrency is a security." In turn, Atkins could be too lenient on crypto exchanges, opening up "significant" chances to defraud investors.
Gensler will step down as SEC chair and leave the agency in January. Atkins must still be confirmed by the U.S. Senate and sworn in before taking on the role.
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