Former SEC Commissioner Paul Atkins Vows to Reform SEC
Former U.S. Securities and Exchange Commission (SEC) Commissioner and Trump-nominated new SEC ### candidate Paul Atkins attended a Senate Banking Committee hearing on the 27th, vowing to reform the SEC and address concerns about conflicts of interest. Having previously served as an advisor to FTX, he also committed to thoroughly investigating the collapse of FTX.
(Background: The SEC has withdrawn lawsuits against Kraken and Consensys, and ended its investigation into Crypto.com, signaling the end of the era of crypto persecution.)
(Supplementary Background: SEC’s new ### “cutting the leeks”? Senator Warren exposes: Paul Atkins colluded with FTX, Sun Yuchen, and Trump coins.)
Restoring Clarity and Restraint in Regulation
Atkins emphasized the need for clear regulatory rules for digital assets, highlighting this as one of the most pressing challenges in balancing innovation and investor protection. He criticized former SEC ### Gary Gensler’s tenure, pointing out issues such as court overruling of his legislative initiatives, significant personnel losses, and controversial enforcement actions against cryptocurrency companies.
Atkins advocates for deregulation, emphasizing the need for clear and effective rules to encourage innovation while maintaining market integrity. He pledged to realign the SEC with its core mission: protecting investors, promoting efficient markets, and facilitating capital formation.
Addressing Concerns About Conflicts of Interest
During the confirmation hearing, Senator Elizabeth Warren sharply questioned Atkins about his connections to the cryptocurrency industry and financial institutions. In a letter submitted before the hearing, she raised concerns about Atkins’ advisory work related to the cryptocurrency sector, particularly his advice to FTX prior to its collapse, questioning whether he could remain impartial.
She also expressed worries regarding his personal financial disclosures, noting that Atkins holds cryptocurrency-related assets valued at approximately $6 million.
In response to Warren’s inquiries, Atkins emphasized his commitment to ethical standards and full transparency, assuring that once his nomination is confirmed, he will divest all assets that could pose conflicts of interest, including cryptocurrency holdings and shares in his advisory firm, Patomak Global Partners.
Atkins also stated that he would adhere to all federal ethics regulations and SEC-related avoidance procedures. While he did not explicitly commit to not returning to the private sector after taking office, he stressed that all his decisions will prioritize public interest and the SEC’s statutory mission over past relationships.
Atkins views his private sector experience as an advantage, believing it enables him to better understand market demands and formulate regulatory rules that do not stifle innovation. He refuted claims that his past experiences might compromise his capacity for neutral leadership, emphasizing that they help him recognize the practical impacts of SEC rules in the real world.
Commitment to Investigate FTX
Having served as an advisor to FTX, Atkins also pledged to further investigate the collapse of FTX, assuring that the SEC will conduct a thorough review in response to concerns raised by Senator Chris Van Hollen.
