President-elect announced Wednesday that he intends to nominate cryptocurrency advocate Paul Atkins to chair the Securities and Exchange Commission.
Trump said Atkins, the CEO of Patomak Partners and a former SEC commissioner, was a 鈥減roven leader for common sense regulations.鈥� In the years since leaving the SEC, Atkins has made the case against too much market regulation.
鈥淗e believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before,鈥� Trump wrote on Truth Social.
The commission oversees U.S. securities markets and investments and is currently led by Gary Gensler, who has been leading the U.S. government鈥檚 crackdown on the crypto industry. Gensler, who was nominated by President Joe Biden, last month that he would be stepping down from his post on the day that Trump is inaugurated 鈥� Jan. 20, 2025.
Trump, once a crypto skeptic, had pledged to make the U.S. 鈥渢he of the planet鈥� and create a 鈥渟trategic reserve鈥� of bitcoin. Money has poured into . The value of bitcoin, the largest cryptocurrency, passed $100,000 Wednesday. And shares in crypto platform Coinbase have surged more than 70% since the election.
Paul Grewal, chief legal officer of Coinbase, congratulated Atkins in a post on X.
鈥淲e appreciate his commitment to balance in regulating U.S. securities markets and look forward to his fresh leadership at (the SEC),鈥� Grewal wrote. 鈥淚t鈥檚 sorely needed and cannot come a day too soon.鈥�
Congressman Brad Sherman, a California Democrat and a senior member of the House Financial Services Committee, said he worries Atkins would not sufficiently regulate cryptocurrencies as SEC chair.
鈥淗e鈥檇 probably take the position that no cryptocurrency is a security, and hence no exchange that deals with crypto is a securities exchange,鈥� Sherman said. 鈥淭he opportunity to defraud investors would be there in a very significant way.鈥�
Atkins began his career as a lawyer and has a long history working in the financial markets sector, both in government and private practice. In the 1990s, he worked on the staffs of two former SEC chairmen, Richard C. Breeden and Arthur Levitt.
His work as an SEC commissioner started in 2002, a time when the fallout from corporate scandals at Enron and WorldCom had turned up the heat on Wall Street and its government regulators.
Atkins was widely considered the most conservative member of the SEC during his tenure at the agency and known to have a strong free-market bent. As a commissioner, he called for greater transparency in and analysis of the costs and benefits of new SEC rules.
He also emphasized investor education and increased enforcement efforts against those who steal from investors over the internet, manipulate markets, engage in Ponzi schemes and other types of fraud.
At the same time, Atkins objected to stiff penalties imposed on companies accused of fraudulent conduct, contending that they did not deter crime. He caused a stir in the summer of 2006 when he said the practice of granting stock options to executives before the disclosure of news that was certain to increase the share price did not constitute insider trading.
U.S. Rep. Patrick McHenry, a North Carolina Republican and chairman of the House Financial Services Committee, said Atkins has the experience needed to 鈥渞estore faith in the SEC.鈥�
鈥淚鈥檓 confident his leadership will lead to clarity for the digital asset ecosystem and ensure U.S. capital markets remain the envy of the world,鈥� McHenry posted on X.
Atkins already has some experience working for Trump. During Trump's first term, Atkins was a member of the , an advisory group of more than a dozen CEOs and business leaders who offered input on how to create jobs and speed economic growth.
In 2017, Atkins joined the Token Alliance, a cryptocurrency advocacy organization.
Crypto industry players welcomed Trump鈥檚 victory in the hopes that he would push through legislative and regulatory changes that they鈥檝e long lobbied for.
Trump himself has launched World Liberty Financial, a with family members to trade cryptocurrencies.
Alex Veiga, The Associated Press
