SEC
Candidate Paul Atkins has sparked concerns over conflicts of interest due to his previous consulting work for FTX, raising doubts about regulatory confidence in Trump’s new era. Senator Warren has pointedly linked Atkins to market manipulation involving Trump Coin and Sun Yuchen…
(Background: Trump’s cryptocurrency conference speech was “completely lackluster,” Bitcoin briefly fell below $84,000, and tariff concerns caused US stocks to close in the red.)
(Context: Good news: The SEC has determined that meme coins “are not securities,” did Trump preemptively create a liability for himself?)
Trump’s Nominee for SEC
Trump’s nominee for the United States Securities and Exchange Commission (SEC), Paul Atkins, has raised concerns over conflicts of interest due to his past consulting work with the bankrupt cryptocurrency exchange FTX. The U.S. Senate recently began deliberations on the new SEC nominee, but Atkins’s past dealings with FTX have sparked controversy. Atkins previously served as an SEC commissioner during the George W. Bush administration and established the consulting firm Patomak Global Partners after leaving office, providing regulatory compliance services for many cryptocurrency-related companies, including FTX as a client.
Senator Warren: Conflicts of Interest Render Atkins Unfit for SEC
According to public records, Atkins’s firm assisted FTX with regulatory and legal compliance issues from 2021 to 2022. Additionally, Patomak Global Partners was listed as one of the creditors in FTX’s bankruptcy case last year, which has raised questions about his impartiality. Senator Elizabeth Warren issued a 34-page inquiry letter to Atkins, demanding he disclose details of his past collaborations with FTX, particularly the amount of consulting fees received and the nature of services provided to FTX. Warren emphasized that the SEC must ensure market fairness and protect investor interests. If Atkins’s connections to FTX cannot be clearly accounted for, it will inevitably raise public doubts about the regulatory agency.
The FTX bankruptcy case has resulted in losses for over a million investors, yet the related regulatory consultant could potentially become a future market regulator; such a conflict of interest could severely erode the independence and credibility of the regulatory body.
Engagement with SBF on Asset Disposal?
The significant losses suffered by many cryptocurrency investors due to FTX have led Senator Warren to question whether Atkins’s previous advice to FTX involved consultations on criminal activities, tax evasion, and money laundering, as well as whether he was aware of the internal affairs of FTX beforehand, which has become a focal point of contention. It is understood that FTX collaborated with Patomak Global Partners in 2022, during a tumultuous period marked by the collapse of LUNA, the bankruptcy of Three Arrows Capital, and the fall of FTX itself. Therefore, whether the consulting firm provided legal advice and assistance to protect investors from losses, in compliance with U.S. securities law, has become a primary inquiry in the letter:
“Your deep cooperation with FTX and cryptocurrency clients raises concerns about whether you can participate impartially in SEC regulation, and the FTX case also leads to significant doubts about whether you understood the situation beforehand. Could you have prevented FTX from causing losses to its investors?”
Involvement with Sun Yuchen and Trump Coin “Harvesting Investors?”
In addition to the FTX case, Warren pointed out that the meme coin TRUMP was launched just days before Trump took office, and shortly thereafter, the SEC stated that “meme coins are not securities.” The subsequent crash of Trump Coin also drew market scrutiny, with Warren questioning whether Atkins’s team discussed this series of actions with the Trump family. Furthermore, Sun Yuchen, the founder of Tron, who had previously been under SEC scrutiny, transitioned in November last year to become an advisor to the Trump family’s “World Liberty Financial” after facing regulatory issues over the sale of tokens by the Tron Foundation, investing an additional $30 million in WLF tokens. Warren’s letter raises suspicions that everything from Trump Coin to Sun Yuchen’s transition from illegal to legal may have involved “insider guidance,” questioning whether Atkins’s associates were in discussions with the Trump family and Sun Yuchen regarding these matters.
Regardless, Trump’s recent major changes in cryptocurrency policy and his collaboration with Musk have provoked discontent among opposition parties, Democrats, and leftist individuals. Recently, a clear factional confrontation has emerged around the Tesla controversy, while Atkins’s past involvement in the FTX case and his consulting for numerous cryptocurrency projects may become a new battleground for regulatory and power conflicts in the U.S.
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