On Wednesday, President-elect Donald Trump unveiled his pick for the next chair of the U.S. Securities and Exchange Commission (SEC), a decision that may be instrumental in shaping the future of U.S. cryptocurrency policy. If confirmed, Paul Atkins, who served as the SEC chair from 2002 to 2008, will potentially usher in a new era of digital asset regulation.
"He believes in the promise of robust, innovative capital markets that are responsive to the needs of investors, and that provide capital to make our economy the best in the world,” Trump announced on TruthSocial. “He also recognizes that digital assets and other innovations are crucial to making America greater than ever before."
However, critics argued that Atkins’ deep ties to the crypto industry make him more likely to favor lax regulation, potentially leaving investors vulnerable in the volatile crypto sector.
Atkins currently serves as the CEO of Patomak Global Partners, which has crypto firms on its client roster, and the co-chair of the Chamber of Digital Commerce's Token Alliance, which works on improving regulatory clarity for crypto tokens.
“Crypto companies’ unprecedented political spending apparently just bought them control of the nation’s investor protection police,” said Bartlett Naylor, Public Citizen’s financial policy advocate. According to the watchdog group, the crypto industry poured at least $119 million on key political races nationwide to ensure favorable, pro-crypto regulations.
“Any sentient being — let alone a securities markets expert — should understand that bitcoin is ‘thin air,’ as Trump himself once put it,” Naylor added, referencing Trump’s past remarks dismissing crypto as “a scam.”
“That Paul Atkins has made a living promoting such a scam doesn’t bode well for his reflexes as a shepherd for investor protection,” Naylor said. He voiced worry that Atkins might boost the crypto industry over retail investors, who often face the consequences of crypto market crashes. “As an SEC veteran, industry consultant and lobbyist, Atkins will be keenly able to reshape the SEC, either to vandalize or improve investor protections. We obviously hope he understands that, if confirmed, he will be expected to work on behalf of average Americans, not his consulting clients, crypto or otherwise.”
However, the mood around Atkins’ selection proved more celebratory among executives in the digital asset industry. “[Atkins] breadth of experience, proven leadership as well as commitment to innovation should bring a balanced and forward-thinking culture back to the Commission,” George Georgiades, General Counsel at Borderless.xyz, told TheStreet Crypto.
“His tenure as co-chair of the Token Alliance at the Digital Chamber of Commerce offers deep insight on both the issues as well as the opportunities presented by the adoption of blockchain technology and digital assets," Georgiades added. "We look forward to engaging with him and the staff to collaboratively develop a clear and effective regulatory framework that supports innovation, upholds the highest standards of oversight and brings the U.S. back into a leadership position globally."