The Senate Banking Committee grilled Paul Atkins, possible new chair of the SEC, on his ties to the crypto sector and FTX crypto exchange, which is no longer operating. At his confirmation hearing, Atkins said he wanted regulatory clarity for digital assets but did not promise to disclose important transparency concerns.
Senator Elizabeth Warren’s most obvious trade was one in which she challenged Atkins’s judgment and possible conflicts of interest. Warren mentioned his consultancy firm, Patomak Global Partners, which had worked for FTX before its catastrophic 2022 collapse. She was curious as to who would purchase the consulting company. However, Atkins only mentioned his intention to sell Patomak, provided it was verified.
Warren stated that you charge your customers a lot of money for regulatory advice, and, if you are confirmed, you would be able to decide things that help them. Your extensive industry knowledge could potentially influence your decisions.
Republican legislators like Committee Chair Tim Scott viewed things differently, saying regulators under former SEC Chair Gary Gensler were going in the wrong direction. Atkins, they claimed, would help to define digital asset rules. Scott pointed out that the previous administration’s approach involved strict enforcement, which instilled uncertainty in the cryptocurrency market.
In his prepared comments, Atkins promised legislators “rational, coherent and principled” leadership on crypto. Scott said that for regulators with enforcement-heavy policies, the previous capacity of the COVID crypto approach popularized significant uncertainty. He didn’t address the SEC decision, but many in the cryptocurrency sector view him as a better regulator and more favorable following his appointment.
Since former President Donald Trump nominated Atkins, he has made significant financial investments in crypto-focused businesses, Securitize and Pontoro. Meanwhile, under acting chair Mark Uyeda, crypto is improving as SEC enforcement proceedings on major businesses like Coinbase, Ripple, and others roll back.
Though worries about conflicts of interest persist, Atkins is a rising leader in digital asset control. His openness and examination will determine his SEC success since the Senate must approve it.
