Earlier this month, incoming President Donald Trump nominated pro-crypto candidate Paul Atkins to take over from Gary Gensler, the incumbent Chairman of the SEC (Securities and Exchange Commission). This move was part of his many promises to the crypto community while campaigning.
Here is everything you need to know about Atkins and some potential changes that analysts expect him to bring as an SEC Chair after his nomination gets approved by Congress next year.
Who is Paul Atkins?
Paul Atkins is a well-known businessman in the United States. Notably, he served as a commissioner at the SEC under the George W. Bush administration between 2002 and 2008. At the time, Atkins ran a pro-innovation campaign, urging the SEC to abandon ‘burdensome policies’ for those that promote innovation in the US.
Furthermore, he advised against enforcement actions leveled at businesses. Instead, he wanted the SEC to focus on individual wrongdoing within the targeted companies.
Atkins has been the CEO of his consultancy company, Patomak Global Partners, since 2009. The firm specializes in litigation support, regulatory advice, and risk compliance services. Interestingly, one of Patomak’s clients was the now-collapsed crypto exchange FTX. In 2023, he claimed that unclear regulations for crypto were among the catalysts of the FTX crisis. He, however, admitted that fraudulent activities committed by the exchange’s former CEO, Sam Bankman-Fried, were the main cause behind the crypto platform’s sudden downfall.
Besides serving as Patomak CEO, Atkins co-chairs a crypto lobbying group called Token Alliance, whose primary goal is to call for clear rules for digital assets in the United States. The group has spoken out against the SEC’s enforcement actions on numerous occasions since its establishment in 2017.
Analyst Expects SEC to Ditch Aggressive Tactics
Meanwhile, Digital Chamber boss Cody Carbone says the SEC will likely abolish its aggressive tactics, which prioritize heavy penalty fees over clear regulatory guidance. He is optimistic that Republican SEC Commissioners Mark Uyeda and Hester Peirce will help Atkins adopt a crypto-friendly approach.
While Uyeda and Peirce will stay in office under Trump’s administration, their colleagues from the Democratic Party, Jaime Lizarraga and Caroline Crenshaw, are expected to leave their roles. Lizarraga announced his resignation in late November. Meanwhile, there’s growing belief that Crenshaw’s renomination is unlikely to be approved due to her support for Gensler’s ‘regulation-by-enforcement’ approach.
What Regulatory Approach Should We Expect Under Atkins’ Leadership?
Rikka Group founder Charlyn Ho expects a change in the way the SEC regulates the crypto industry when Atkins assumes office. She says the agency is unlikely to introduce more regulations. Instead, it will focus more on getting rid of regulatory roadblocks and providing clarity as requested by crypto players.
According to Ho, a clear regulatory framework could encourage foreign crypto companies to consider setting up shops in the United States. It’s worth mentioning that several crypto firms have left the American market over the past few years due to regulatory unclarity.
A Quick Overhaul at SEC is Unlikely
While Atkins would want to introduce regulatory clarity as soon as possible, Ho warns that crypto players expecting a quick turnaround at the SEC may be wrong. She claims that all the legal work initiated by Gary Gensler cannot be dropped immediately just because a pro-crypto SEC Chair has assumed office. Instead, it will have to pass through a legal process, with pro-crypto SEC commissioners required to justify why the lawsuits against targeted companies should be dropped. Ho says this process may take some time.
When is Atkins Expected to Take Over From Gensler?
As mentioned, Atkins must be vetted by Congress before he replaces Gensler as the SEC Chairman. The US policymakers can vote for or against Trump’s nomination. However, Carbone is positive that Atkins’ nomination will be approved in March, with the nominee expected to start working the same month.
But why is Carbone optimistic? He argues that Republican policymakers are the majority in Congress, so they are likely to confirm the Presidential nomination.
