Newly elected US President Donald Trump has chosen Paul Atkins to head the Securities and Exchange Commission (SEC), The New York Times reports. This appointment is expected to mark a significant shift toward looser regulation, especially for the cryptocurrency industry.
Trump announced the decision by praising Atkins as a "proven leader in common-sense regulation" and emphasizing his focus on fostering innovation in digital assets and finance. Atkins, 66, previously served as a member of the Securities and Exchange Commission under President George W. Bush and is a well-known figure in the financial and regulatory sectors.
Atkins is seen as a strong advocate of relaxing cryptocurrency regulation, which is in line with Trump's campaign promise to end the SEC's crackdown on the industry. His appointment has been welcomed by crypto advocates, who expect a change from the heavy-handed enforcement approach championed by former SEC Chairman Gary Gensler.
Atkins has played an active role in shaping crypto policy, serving as co-chair of the Token Alliance and as an advisory board member of Securitize, a firm promoting digital tokens. His firm, Patomak Global Partners, has provided regulatory advice on cryptocurrencies and digital assets, further cementing his position as a key figure in the industry.
Under Gensler's leadership, the S.E.C. has taken a tough approach to regulating cryptocurrencies, treating most digital assets as securities and bringing high-profile cases against companies such as Coinbase. These efforts have drawn criticism from Republicans and some Democrats, who have argued that crypto assets should be classified as commodities or currency, removing them from the SEC's jurisdiction.
Atkins is likely to roll back these initiatives, potentially dismissing or settling cases like the SEC's lawsuit against Coinbase, which accuses the exchange of selling unregistered securities. This change could coincide with efforts by Republicans in Congress to pass legislation limiting the SEC's authority over digital assets.
Atkins' nomination requires Senate confirmation, but his appointment comes amid broader changes at the SEC. Gensler, whose term officially runs until 2026, announced that he would step down on January 20, the day Trump takes office. Another Democratic member of the commission, Jaime Lizarraga, is also set to leave, leaving Republicans with a majority in the five-member commission.
The new leadership of the Commission is expected to prioritize the repeal of several Gensler initiatives, including rules requiring public companies to address climate change and promote diversity. Critics argue that these measures go beyond the SEC's mandate and distract from its core mission of protecting investors.