President-elect Donald Trump has tapped Paul Atkins, a known cryptocurrency advocate, to chair the Securities and Exchange Commission (SEC), according to sources close to the discussions. This move fulfills a campaign promise to the crypto community and signals a potential departure from the current administration’s stricter regulatory approach. While one source indicated Trump has extended the offer, Atkins’ acceptance is still pending. The nomination will require Senate confirmation, unless Trump opts for a recess appointment.
Atkins, who served as an SEC commissioner under President George W. Bush, enjoys widespread respect within conservative legal circles and the Republican establishment. Since leaving the commission, he has become a vocal supporter of the crypto industry, notably co-chairing the Token Alliance at the Digital Chamber of Commerce since 2017. He also founded and leads Potomak Global Partners, a consultancy advising digital finance companies on regulatory compliance since 2009.
This nomination comes in the wake of outgoing SEC Chair Gary Gensler’s announced resignation, effective January 20th, upon Trump’s inauguration. Gensler’s tenure was marked by a “regulation by enforcement” approach towards the crypto industry, earning him considerable criticism for a perceived lack of clear guidelines and a flurry of enforcement actions against crypto exchanges, token issuers, and NFT creators. Gensler maintained that existing securities laws applied to most crypto projects, with the notable exception of Bitcoin, which he classified as a commodity.
Atkins’ nomination is seen as a direct response to Gensler’s unpopularity within the crypto community. The Trump transition team reportedly consulted with industry leaders regarding their preferences for the SEC chair, highlighting the significance of this issue.
“Senate Republicans really respect the tradition of Commissioner Paul Atkins,” commented George Mason University professor J.W. Verret, a former member of the SEC Advisory Committee. “He was the first time anyone had been a true libertarian and SEC commissioner, and that was a unique thing.”
Beyond his policy stance, Atkins is known for his ability to maintain strong working relationships even amidst ideological differences, a stark contrast to Gensler’s reputation for being difficult to collaborate with. John Reed Stark, who worked with Atkins at the SEC in 2008, remarked, “There was never a commissioner at the history of the commission that was more respectful and thankful of the staff at the commission.”
Interestingly, Paul Atkins has served as an advisor to the RSR token, which experienced a 20% surge following the news of his nomination.
