Senate Banking Committee grills Paul Atkins over crypto ties as he vows SEC reforms
Paul Atkins, former SEC Commissioner and President Donald Trumps nominee to chair the US Securities and Exchange Commission (SEC), appeared before the Senate Banking Committee on March 27, vowing to restore clarity and restraint to the agencys regulatory agenda.
A key focus of his testimony was the need for coherent rules governing digital assets, which he described as a pressing challenge for both innovation and investor protection.
Atkins criticized aspects of former SEC Chair Gary Genslers tenure, highlighting concerns over federal courts overturning rulemaking initiatives, increased staff attrition, and controversial enforcement actions against cryptocurrency firms.
He advocated for a shift towards deregulation, emphasizing the need for clear and effective rules that promote innovation while safeguarding market integrity. He pledged to return the agency to its core mission of protecting investors, promoting efficient markets, and facilitating capital formation.
Concerns over conflicts, crypto past
During the confirmation hearing, Senator Elizabeth Warren sharply questioned Paul Atkins over his connections to the cryptocurrency industry and financial firms.
In a letter submitted ahead of the hearing, Warren questioned whether Atkins could remain impartial given his consulting ties to the industry, particularly his role advising FTX before its collapse.
She also raised concerns about his personal financial disclosures, which show substantial holdings linked to the crypto sector totaling roughly $6 million.
Warren urged Atkins to commit to recusing himself from any future matters involving his former clients and to avoid returning to the financial industry for at least four years after serving. She emphasized that such steps were necessary to restore public trust in the SECs independence.
Paul Atkins responded to Senator Warrens questioning by emphasizing his commitment to ethical standards and full transparency. He assured the committee that, if confirmed, he would divest from all financial holdings that could present a conflict of interest, including crypto-related assets and his consultancy, Patomak Global Partners.
He also stated that he would comply with all federal ethics rules and SEC protocols regarding recusals. While he stopped short of committing to a formal post-service employment ban, Atkins maintained that his decisions would be guided solely by the public interest and the SECs statutory mandate not by prior affiliations.
Atkins positioned his private-sector experience as an asset, arguing that it gave him the insight needed to craft effective regulations without stifling innovation. He rejected the notion that his past work compromised his ability to lead impartially, saying it instead equipped him to understand the real-world impact of the agencys rules.
He also promised to probe the FTX collapse further and ensure that the SEC looked into the matter thoroughly in response to concerns raised by Senator Chris Van Hollen.
Charting a new course
Looking ahead, Atkins said one of his top priorities would be working with fellow commissioners and lawmakers to craft a regulatory approach to digital assets that is principled, structured, and technology-neutral. He said the current lack of clarity has led to confusion and discouraged innovation.
He argued that with appropriate rules in place, the US could solidify its leadership in financial innovation and attract global investment. Atkins also signaled his opposition to what he described as overly politicized rulemaking and called for the SEC to focus on its statutory obligations rather than advancing partisan agendas.
With the SEC at a crossroads, Atkins nomination is expected to shape the agencys direction on issues ranging from crypto markets and ESG disclosure to enforcement priorities and market structure reforms.
The Senate committee will continue its evaluation before voting on whether to advance his nomination. If the committee votes in favor, the nomination proceeds to the full Senate for a confirmation vote. There, a simple majority is needed for final confirmation.
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Text source: CryptoSlate
