2025-03-25
Senator Elizabeth Warren is challenging
President Trump’s pick for SEC Chair, Paul Atkins, over his connections to
collapsed crypto exchange FTX and possible conflicts of interest involving
Trump’s memecoin, $TRUMP.
Ahead of Atkins’ Senate Banking
Committee hearing on Thursday, Warren sent a 34-page letter outlining concerns
about his work as a consultant for crypto and banking firms, including his role
advising FTX.
Patomak Global Partners, the firm
Atkins founded, reportedly worked with FTX shortly before its 2022 collapse.
Warren questioned whether Atkins knew
of illegal activity at the exchange and criticized his broader stance on crypto
regulation.
Warren also raised red flags about
Trump’s own crypto ventures. She cited the SEC’s decision to pause a lawsuit
against crypto figure Justin Sun—who later became an advisor to a Trump-backed
DeFi initiative—as a potential sign of political interference.
The senator pushed Atkins to disclose
any conversations with Trump about crypto, Sun, or a potential $TRUMP ETF.
Beyond crypto, Warren cited Atkins' deregulatory stance prior to the 2008 financial crisis, when he served as an SEC commissioner. She questioned his ability to serve as an impartial regulator given his consulting work for major financial institutions.
Atkins is set to testify alongside
other Trump nominees, including Jonathan Gould for Comptroller of the Currency.
The hearing comes at a pivotal time for the SEC, which is reassessing its
approach to digital assets after former Chair Gary Gensler’s exit in January.
Paul Atkins,
nominated by President Donald Trump to lead the U.S. Securities and Exchange
Commission (SEC), is scheduled for a Senate Banking Committee confirmation
hearing on March 27, 2025.
Atkins previously served as an SEC
commissioner from 2002 to 2008 and later founded Patomak Global Partners, a
consulting firm specializing in financial regulatory matters.
His nomination has garnered attention
due to his advisory roles with various financial entities, including
cryptocurrency firms.
Notably, his firm advised the
now-defunct crypto exchange FTX and the Chamber of Digital Commerce, a
blockchain advocacy group.
This has raised concerns among some
lawmakers, such as Senator Elizabeth Warren, who have questioned his potential
conflicts of interest and stance on digital asset regulation.
If confirmed, Atkins would serve a term
ending in June 2031, succeeding Acting Chair Mark Uyeda.
The confirmation process involves the
Banking Committee's approval, followed by a full Senate vote. Given the
Republican majority in the Senate, his confirmation appears likely, though some
GOP members have expressed reservations about certain nominees.
Atkins' confirmation could signal a
shift in the SEC's regulatory approach, particularly concerning cryptocurrency
oversight, aligning with the administration's more lenient stance on digital
assets.
