Mar 29, 2025

At a U.S. Senate Banking Committee hearing on March 27, Senator Elizabeth Warren criticized Atkins, calling his decisions “stunningly bad” during his tenure at the SEC from 2002 to 2008 – just before the 2008 financial crisis. Millions of dollars and a dim future Warren was particularly interested in the fate of Atkins' consulting firm Patomak Global Partners, whose client was the infamous crypto exchange FTX, which collapsed in 2022. The senator demanded disclosure of potential buyers of the company, which Atkins has promised to sell if confirmed as SEC chairman. “Your clients pay you more than $1 200 an hour for advice on how to influence regulators like the SEC. And if you get approved, you'll be in the perfect position to help all those clients who have been paying you millions of dollars for years,” Warren said, hinting that Atkins' objectivity may be in question. A particularly poignant moment came when the senator asked for disclosure about potential buyers of Patomak, who she said were effectively “buying access to the future SEC chairman.” Atkins avoided a direct answer, saying only that he would “follow procedure.” Warren did not fail to characterize the possible sale of the company as an “upfront bribe” for the former SEC commissioner's future services. Republican support and a new approach to regulation In contrast to harsh criticism from Democrats, Republicans on the committee expressed support for Atkins' nomination. Committee Chairman Tim Scott criticized the SEC's course under former Chairman Gary Gensler and said Atkins would provide “long overdue clarity for digital assets.” Atkins himself outlined priorities in his published statement, “My top priority as chairman will be to work with my fellow commissioners and Congress to build a strong regulatory framework for digital assets through a rational, consistent, and principled approach.” The changes have already begun Although the Senate Banking Committee has yet to vote on Atkins' nomination, the SEC is already showing a friendlier approach to cryptocurrency companies since Donald Trump took office and appointed Commissioner Mark Uyeda as acting chairman of the agency. Under Uyeda's leadership, the commission has halted several investigations and enforcement actions against major crypto firms, including Coinbase and Ripple – both companies made contributions to political committees supporting Republican candidates in the 2024 election cycle. SEC chief nominee Paul Atkins owns shares in three crypto companies According to a report by Fortune, ahead of a Senate hearing scheduled for Thursday, Atkins has officially disclosed his assets. Notably, while there are stakes in crypto companies, the candidate himself does not directly own cryptocurrencies. Bloomberg reports that the combined fortune of Atkins and his wife is estimated at a minimum of $327 million. The details of Atkins' financial investments are impressive: according to documents obtained by Fortune, he held a seat on Securitize's board of directors and owned call options worth up to $500 000. In addition, his stake in Anchorage Digital is valued in the range of $250 to $500 thousand, and his investments in Off the Chain Capital range from $1 to a million. Path to Appointment President Donald Trump nominated Atkins, known for his support of cryptocurrencies, to head the SEC back in December of last year. Former chairman Gary Gensler stepped down on January 20, after which the commission was temporarily led by Mark Uyeda. It's worth noting that this won't be Atkins' first experience at the SEC. Former President George W. Bush already appointed him SEC commissioner for the period from 2002 to 2008. After that service, Atkins founded the consulting firm Patomak Global Partners, whose clients included cryptocurrency exchanges and DeFi platforms. He also joined the Digital Chamber's board of directors in 2020, but left that position after a nomination from Trump. In the crosshairs of criticism Atkins' nomination has already sparked a reaction in political circles. On March 24, Senator Elizabeth Warren sent the nominee a 34-page letter demanding clarification about his ties to the bankrupt cryptocurrency exchange FTX. The senator also raised questions about President Trump's possible conflicts of interest related to his memcoin. The upcoming Senate hearing could be indicative of the future of cryptocurrency regulation in the US. The appointment of a digital asset advocate to head the SEC potentially signals a possible softening of the regulatory approach to the industry. Atkins' appointment could mark a significant turnaround in U.S. regulatory policy toward cryptocurrencies, but questions about conflicts of interest remain on the table. Source: https://coinpaper.com/8273/future-sec-head-under-pressure-over-sale-of-ftx-linked-firm