Key Takeaways
- The incoming Trump administration has tapped former SEC commissioner Paul Atkins to lead the US Securities and Exchange Commission (SEC). Atkins, a known advocate for the digital asset sector, is recognized for his balanced regulatory approach and deep understanding of securities law.
- If green-lit by the President-elect, Atkins will replace Biden-appointed SEC chair Gary Gensler, whose tenure has been marked by unfavorable regulatory actions against crypto firms including Binance and Coinbase. Gensler will step down on January 20, 2025.
- Trump is also considering shifting regulatory oversight of cryptocurrencies from the SEC to the Commodity Futures Trading Commission (CFTC). The move would lead to the asset class being classified as a commodity and could have a major impact on global crypto regulations.
- Other nominees for the role of SEC chairman include current commissioner Mark Uyeda, securities lawyer Teresa Goody Gullen, and Willkie Farr & Gallagher LLP partner Robert Stebbins.
President-elect Donald Trump’s transition team has reportedly interviewed former U.S. Securities and Exchange Commission (SEC) commissioner Paul Atkins as a candidate to lead the agency under the incoming administration.
Bush-era SEC Commissioner Paul Atkins Could Head The Agency Under Trump
Atkins, who served as SEC commissioner under the Bush administration, is known for his pro-innovation stance and expertise in crypto and securities. According to an X post by financial reporter Eleanor Terrett, he is capable of returning the agency to its “gold standard”.
The Trump administration is also considering other candidates for the role, including current SEC commissioner Mark Uyeda, securities lawyer Teresa Goody Gullen, and Robert Stebbins, a partner at New York-based law firm Willkie Farr & Gallagher LLP.
The scales are tipping in favor of Atkins due to his proven track record of advocating for digital assets. He even testified before Congress about restructuring the SEC and reducing some of its burdensome regulations.
Atkins taking over the SEC from its current chairman, Gary Gensler, would suggest that the crypto regulations proposed by the US may help promote innovation rather than hinder it. Gensler, widely unpopular among crypto investors and institutions, announced he would step down ahead of Trump’s inauguration.
Gary Gensler’s Tenure As SEC Chair Was Dominated By Lawsuits Against Crypto Firms
His tenure was marked by aggressive “regulation by enforcement” actions against crypto firms, including Coinbase, Binance, Ripple, and Kraken, as part of the Biden administration’s efforts to regulate the industry. It was characterized by frequent lawsuits and limited guidance for crypto firms. His actions were critiqued by industry players for stifling growth and innovation.
During his campaign, Trump promised to fire Gensler on day one and replace him with a pro-crypto SEC head. While the President-elect wouldn’t get the chance to take action, the attorney generals (AG) of 18 US states have filed a lawsuit against the regulator and its commissioners, including Gensler, for “unfair persecution” of the crypto industry.
Atkins’ potential appointment comes amid speculation that Trump is considering shifting regulatory oversight on crypto assets from the SEC to the Commodity Futures Trading Commission (CFTC). The move, which is expected to have major implications for the sector, would shift the responsibility for regulating digital assets classified as commodities, such as Bitcoin (BTC), to an agency known to be more supportive of innovation in the financial sector.
Trump Appoints Pro-Crypto Members To His Cabinet, Even Considering A ‘Crypto Czar’
It was during Trump’s first term that the CFTC, under its former chairman Chris Giancarlo, cemented its reputation as a proponent of financial innovation by approving the first-ever Bitcoin options.
Trump, who once strongly opposed cryptocurrencies, even calling it a “scam”, made a sharp U-turn, getting behind the sector and campaigning for it. While speaking at the Bitcoin 2024 conference held in July, the former president promised to create a strategic Bitcoin reserve and appoint crypto-friendly regulators.
He has already made good on that promise by naming pro-Bitcoin advocate Howard Lutick as Commerce Secretary and is reportedly considering Chris “Crypto Dad” Giancarlo for the role of Crypto Czar – an all-new cabinet position in the White House.
Atkins, who served as SEC commissioner under the chairmanship of Richard Breeden and Arthur Levitt, is recognized for his balanced approach toward regulation and deep understanding of securities law.
Although the new SEC leadership will be supportive of the crypto sector, it is still expected to maintain focus on its core priorities, which include fraud prevention, insider trading enforcement, Ponzi scheme elimination, and oversight of corporate disclosures.
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