US Senate approves the appointment of crypto lawyer Paul Atkins to head the SEC

What’s new? The US Senate approved Paul Atkins’ appointment as chairman of the Securities and Exchange Commission (SEC) by 52 votes to 44. Atkins, whose nomination was proposed by President Donald Trump, is expected to begin creating a regulatory framework for the cryptocurrency industry in his new post. Atkins himself called this task a top priority at a Senate Banking Committee hearing last month.

Material by The Block

What else is known? Senate Banking Committee Chair Republican Tim Scott also noted that under Atkins’ leadership, “the SEC will return to its core mission and will ensure our markets remain the envy of the world.”

SEC пересмотрит выпущенные ранее руководства о регулировании ценных бумаг

Они могут быть отменены или изменены в соответствии с текущими приоритетами агентства

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Atkins previously served as SEC commissioner under George W. Bush’s nomination from 2002 to 2008. In 2009, he founded Patomak Global Partners, a consulting firm whose clients include banks, crypto exchanges, and decentralized finance platforms (DeFi).

As such, Atkins’ candidacy has been criticized by some Democrats, including Senator Elizabeth Warren. She noted a possible conflict of interest because Atkins will now be responsible for regulating companies that previously paid him for advice, including in proceedings with the SEC.

Democrats also recalled Atkins’ ties to Sam Bankman-Fried’s collapsed crypto exchange FTX. So, according to the WSJ, FTX had been a client of Patomak Global Partners since early 2022. Later that year, the exchange went bankrupt due to a multi-billion dollar fraud involving client assets, for which the founder received 25 years in prison.

“He [Atkins] has spent his post-government career helping billionaire scammers like CEO Sam Bankman-Fried get even richer,” Warren claimed.

Sam Bankman-Fried cited Republican support as one of the reasons for his 25-year prison sentence

The entrepreneur was convicted of multibillion-dollar fraud involving FTX customer funds last March

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Atkins himself disclosed ownership of up to $6 million in cryptocurrency assets at a hearing last month. He also pledged to step away from Patomak Global Partners and other companies, including crypto investment firm Off the Chain Capital, if appointed.

In general, after Trump’s inauguration and the departure of former SEC chair Gary Gensler, the regulator has rapidly changed its approach to digital assets. For example, the SEC has already dropped a number of investigations and litigation against crypto firms, repealed the controversial SAB 121 cryptocurrency accounting rule, and created a cryptocurrency task force that will hold a second roundtable on April 11.