Trump Picks Paul Atkins to Lead SEC, Signaling Favorable Regulatory Environment for Finance and Crypto Industries

Trump’s choice of Atkins, which he announced on Truth Social comes two weeks after the current SEC chair, Gary Gensler, said he would step down on Jan.

Former Securities and Exchange Commission member Paul Atkins is set to be nominated by former President Donald Trump to lead the agency once again, according to an announcement Trump made on Truth Social on Wednesday.

This announcement, which comes two weeks after Gensler announced his departure from the SEC on Jan. 20, the last day of President Biden's term, will see Atkins return to the commission after serving as a commissioner from 2002 to 2008. During his previous tenure at the SEC, which began after being appointed by former President George W. Bush, Atkins was known for advocating for free markets while emphasizing the commission's role in protecting investors.

Atkins, who currently serves as the founder and CEO of financial services consultancy Patomak Global Partners, is also notably the co-chair of the Digital Chamber of Commerce's Token Alliance since 2017. This group advocates for clearer regulations for digital assets, reflecting Atkins' interest in the crypto industry.

In contrast to Gensler, who has been criticized by the crypto industry for what they deem to be an overly aggressive “regulation by enforcement” approach, Atkins is expected to push for fewer regulations and lower penalties for securities violations. This preference aligns with Trump's pledge to support a favorable regulatory environment for the finance and crypto industries.

Atkins' selection to lead the SEC is seen as a significant development, especially given the strained relationship between the crypto industry and Gensler. Throughout his tenure, Gensler's focus on applying existing securities laws to digital assets has led to several high-profile enforcement actions against crypto firms, which have been met with resistance from the industry.

As this nomination awaits Senate confirmation, Atkins is likely to face less opposition compared to some of Trump's other controversial picks. Among those previously mentioned as potential candidates for the SEC chair role were current SEC commissioner Mark Uyeda and Robinhood chief legal officer Dan Gallagher.

Following the announcement of Atkins' nomination, several industry leaders expressed their support. In a statement, Blockchain Association CEO Kristin Smith described Atkins as an “excellent choice,” adding that he will bring a “new perspective, anchored by a deep understanding of the digital asset ecosystem.”