President-elect Donald Trump has announced Paul Atkins as his choice for the new chair of the Securities and Exchange Commission (SEC), signaling a more crypto-friendly regulatory approach.
“Paul is a proven leader for common-sense regulations,” Trump said in a statement on Truth Social on Dec. 5. “He recognizes that digital assets and other innovations are crucial to making America greater than ever before.”
Atkins’ nomination follows the resignation of SEC Chair Gary Gensler, who faced heavy criticism from the crypto industry for his enforcement-first approach. Under Gensler, the SEC pursued lawsuits against major crypto exchanges, including Binance, Coinbase, and Kraken, accusing them of operating unregistered securities exchanges.
The SEC also sued Ripple Labs in December 2020, claiming it raised over $1.3 billion through an unregistered securities offering of XRP. Ripple disputed this, arguing XRP is a digital currency. The case saw a partial ruling in Ripple's favor in 2023, but legal uncertainties linger as the SEC continues its appeal.
Pro-Crypto Track Record
Atkins, a former SEC commissioner from 2002 to 2008 under former President George W. Bush is known for advocating a conservative regulatory approach aimed at “do[ing] no harm.” He currently leads Patomak Global Partners, a financial consultancy firm, and has long advocated for clear and consistent regulations in the crypto space.
Since 2017, Atkins has co-chaired the Token Alliance, a 400-member initiative created by the Chamber of Digital Commerce to promote responsible growth in the digital asset industry.
In a 2022 interview with CoinDesk, Atkins criticized the SEC’s regulation through enforcement-driven strategy.
“The way the SEC is doing this, as regulation through enforcement… is a real problem,” he said.
Trump has positioned himself as a champion of the crypto industry, pledging to make the U.S. a global leader in crypto innovation. During his campaign, he vowed to replace Gensler and create clear regulations for the industry. He also proposed forming a crypto advisory council and even establishing a national Bitcoin reserve.
The nomination of Atkins will require Senate approval, but Trump could make a recess appointment if the Senate is not in session.
Crypto Industry Celebrates Atkins’ Nomination
Atkins' nomination is being celebrated by prominent figures in the crypto industry.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, said that Atkins is a “great choice” as next Chair of the SEC.
“The SEC is in dire need of a reset. Instead of protecting investors and fostering innovation, it 'protected' investors from the likes of bitcoin ETFs and stifled innovation. Atkins will usher in common sense and a do no harm approach,” Winklevoss said.
Carlos Domingo, founder of Securitize — a platform that enables the issuance and management of tokenized securities, said Atkins as SEC chair “is really good for the industry overall, not just necessarily for us."
Jake Chervinsky, chief legal officer (CLO) at Variant Fund, called Atkin’s appointment a monumental shift for the crypto industry.
"It's impossible to express the magnitude of the shift we're likely to see at an SEC run by Paul Atkins," Chervinsky wrote on X. "Crypto has literally never existed without the overhang of uncertainty or hostility from US regulators. This moment is a regulatory singularity before a new era for crypto."
