After Gary Gensler announced that he will resign on January 20, when President-elect Donald Trump takes office, heated speculation about who will become the next SEC Chair is nearing its conclusion.
Several reports declare Paul Atkins, a veteran financial regulator, as the current favorite for the role. After his tenure as an SEC commissioner during the George W. Bush administration, Atkins founded Patomak Global Partners, a consulting firm for major financial industry clients. He also worked as an independent compliance consultant and court-appointed monitor in settlements involving federal agencies and regulators. In 2016, he joined Trump’s economic advisory team, which included CEOs from Disney, JPMorgan, General Motors, and BlackRock.
According to a Bloomberg report, Donald Trump has already interviewed Paul Atkins and considers him to be a leading candidate for the position of the next SEC Chair. Trump is expected to announce his pick in the coming days, but no decision has been made yet.
Following the news, Atkins’ odds on the prediction market Kalshi shot up to 60%, leaving behind two other possible candidates, Binance US ex-CEO Brian Brooks and Teresa Goody Guillen, a former SEC attorney who now represents blockchain companies.
Atkins previously testified before Congress on restructuring the SEC to improve its efficiency and cut expenses, which is again in line with Trump’s vow to roll back government spending.
If selected, Atkins' appointment bodes well for crypto. A known advocate for blockchain and digital innovation, Atkins is anticipated to be a prime candidate for reversing the purported damage done to the industry by Gensler’s SEC.
“Atkins is someone who is not only crypto-savvy but possesses a deep understanding of the inner workings of the agency as both a former commissioner and staffer. Atkins is seen as being capable of establishing a pro-innovation agenda while returning the agency to the so-called ‘golden standard’ many in the Republican Party feel was lost under Gensler,” claimed Fox Business reporter Eleanor Terrett.
A crypto skeptic during his first term, Donald Trump emerged as an industry’s favorite on the 2024 campaign trail, all thanks to his bold promises to establish the national Bitcoin reserve, keep Bitcoin miners in the US, and create a crypto presidential advisory council. But most importantly, Trump promised to fire Gary Gensler “on day one,” much to the cheering of the crypto crowd, who has long had their knives out for the SEC Chairman known for his aggressive approach to the industry.
Trump's promise, while enticing to many, is not straightforward to execute. SEC officials are appointed for five-year terms and cannot be removed without cause. However, it is customary for the SEC Chair to step down after a party change, allowing the new administration to implement its economic policy.
Gensler earned himself a reputation as tough on crypto, as evidenced by the slew of enforcement actions against the companies and individuals in the industry. Under his tenure, the agency brought more than 100 actions against crypto firms, including high-profile lawsuits against exchanges Coinbase, Kraken, and Gemini. Gensler’s SEC also shared credit with other government agencies for putting FTX founder Sam Bankman-Fried and Binance’s Changpeng ‘CZ’ Zhao behind bars.
CFTC to get oversight of the US crypto market
In multiple interviews, Gary Gensler stated that most digital assets already belong under his agency’s jurisdiction, and the enforcement actions dreaded by crypto companies are simply meant as a tool to bring the sector under compliance. Now, Donald Trump is about to challenge this stance.
Trump’s team is reportedly considering shifting the authority over the crypto market from SEC to CFTC, a step believed to grant the industry the long-sought-after regulatory clarity.
According to Fox Business sources, the CFTC's role may be expanded to include the regulation of spot markets for digital commodities—such as Bitcoin and Ether—and exchanges that facilitate their trade. If made a reality, this would mean a big win for the industry that has long signaled it would prefer to do business with the agency over the SEC.
To start policing crypto more effectively, the CFTC would need a significant injection of funds. Currently, the operating budget of the agency for 2024 is $706 million, more than four times smaller than the SEC’s $3 billion. SEC also employs seven times more staff than the CFTC.
In July, CFTC’s outgoing Chairman Rostin Behnam asked the agriculture committee for more funding to regulate the crypto market more efficiently. Behnam pointed out that half of the agency’s enforcement actions in 2024 have been brought against crypto businesses, which he called a ‘staggering statistic’ for the agency with no mandate over the industry.
“The SEC has great bones, but whoever leads it next will need great policy chops as well as great admin skills to bring it back to being a contributing part of an administrative agenda,” former CFTC chair Chris Giancarlo told Fox Business.
