Who Paul Atkins is, why crypto investors are optimistic about his appointment, and what the SEC could become under his leadership.
Career and Achievements of Paul Atkins
Paul Atkins is an expert with deep knowledge of financial regulation and international law. He was a Commissioner of the SEC from 2002 to 2008. During his tenure at the Commission, Atkins advocated for increased transparency, consistency in regulation, and mandatory cost-benefit analysis when adopting new rules. He received his education at Vanderbilt University School of Law.
He represented the SEC at key international platforms. For example, Atkins has spoken on behalf of the Commission at the Transatlantic Economic Council and the World Economic Forum.
After leaving the SEC, he founded Patomak Global Partners where he still does consulting work. Atkins assists financial companies with Dodd-Frank (Wall Street Reform and Consumer Protection Act) compliance, corporate governance and international regulatory issues. He also serves as an independent compliance consultant and litigation monitor in cases involving federal agencies.
He also has experience working for PricewaterhouseCoopers, an accounting firm, and Davis Polk & Wardwell, a law firm. As part of his association with the organizations, he has had time to work in both the United States and Europe, including the firm's Paris office. Atkins also served as a director and chairman of BATS Global Markets, a company that operated major electronic exchange platforms in the U.S. and Europe. During his time at Vanderbilt University School of Law, he was a senior student writing editor for the Vanderbilt Law Review.
In addition, Atkins was a member of the congressional watchdog group overseeing the Troubled Asset Relief Program (TARP) in 2009-2010. He made significant contributions to the Vanderbilt Law Review.
Since 2017, Atkins has been co-chair of the Token Alliance, a group that develops standards and practices for the issuance of digital assets and the operation of trading platforms. His interest in crypto has cemented his reputation as a proponent of simplifying regulations to grow the crypto industry.
SEC Career Highlights
Paul S. Atkins served as Commissioner of the Securities and Exchange Commission (SEC) from August 2002 to August 2008. During his tenure, Atkins was deeply involved in the SEC’s individual investor program, organizing investor town hall meetings to promote financial literacy and education. His commitment to corporate governance was evident as he worked tirelessly to strengthen management accountability through proxy reform.
Atkins played a pivotal role in enhancing regulations related to corporate governance and improving shareholder communications. His collaboration with law enforcement agencies was crucial in investigating and rectifying situations where investors had been harmed, such as the high-profile Bennett Funding Group scandal. As crisis president of Bennett’s sole surviving subsidiary, Atkins improved the company’s share value for the remaining investors by almost 2000%.
Throughout his career at the SEC, Atkins served under two former chairmen, Richard C. Breeden and Arthur Levitt, as executive assistant and counsellor, respectively. His efforts to assist financial services firms in improving their compliance with SEC regulations and decreasing barriers to entry for small businesses and middle market companies to the capital markets were noteworthy. Atkins was a key player in promoting financial innovation and reducing regulatory burdens on financial services firms.
Atkins’ extensive experience and expertise in financial services regulation made him a valuable asset to the SEC. His legacy continues to shape the agency’s approach to corporate governance and investor protection, ensuring a balanced and fair financial market.
Views on cryptocurrencies and securities and exchange commission regulation
Atkins supports the development of the crypto industry. He emphasizes that the regulators’ approach should encourage innovation, reduce costs and create new opportunities for businesses and investors. Atkins has also criticized the SEC's actions against major crypto firms, arguing that the focus should be on creating a clear regulatory framework rather than pursuing lawsuits.
In interviews and public appearances, Atkins talks about the need to make the SEC flexible and open to changes in the marketplace. Overhauling the Commission, he believes, will help spur the development of new technologies rather than stifling them with excessive regulation. He has been involved in the SEC's individual investor program, which aims to enhance investor education and communication through initiatives like town hall meetings and 'Invest Wisely' brochures.
What the SEC could become under Atkins served
Paul Atkins demonstrates a deep understanding of financial regulation. However, there are delays in the Senate confirmation process, with nine cabinet members, including Atkins, awaiting confirmation. In doing so, he recognizes the importance of digital innovation. The Senate Banking Committee plays a critical role in his confirmation process, and any delays in scheduling his hearing can impact the broader crypto agenda.
His appointment could lead to a softening of the SEC’s approach to regulating cryptocurrencies and a stronger dialog with the industry.
Unfortunately, Atkins’ desire to soften regulations may draw criticism from supporters of stricter oversight. In any case, the success of his work will depend on his ability to balance support for innovation and protection of investor interests. It seems that the candidate to head the SEC has all the necessary qualities for this.
Paul Atkins' policy: SEC reforms and financial regulation
The appointment is a marked change from current SEC Chairman Gary Gensler under the Democratic administration of Joe Biden. Gensler used a heavy-handed approach to crack down on Wall Street and cryptocurrencies, which upset industry executives.
Atkins could well use his SEC's business-oriented approach and regulatory expertise and knowledge to revise many of Gensler's provisions, including restrictions on cryptocurrency recordkeeping . This could signal a reset between regulators and crypto institutions in the US, as Atkins would bring a collaborative approach to policy.
Financial commentators in particular pointed to his work as co-chair of the Token Alliance, where he helped create best practices for cryptocurrency issuance. At the same time, his role on the advisory board of the Chamber of Digital Commerce helped fuel the hype.
In fact, cryptocurrency markets were energized by Atkins' selection. Within 24 hours of announcing his candidacy, bitcoin's all-time high price surpassed $100,000 for the first time. It was a clear show of confidence that the incoming SEC chairman will be able to free digital assets from their current stranglehold and foster innovation. In short, the crypto industry can expect clarity, fairness, and cooperation.
As a side note, the SEC filed suit against several major U.S. crypto operators during the Gensler administration , including Consensys, Coinbase, and Kraken. Cryptocurrency-related cases accounted for 5%-8% of cases between 2021 and 2024
US will become a crypto leader
Trump has promised to make the U.S. the "crypto capital of the planet," plans that could include a strategic Bitcoin reserve . Since his election victory, money has flowed into cryptocurrency markets and correlated assets such as Coinbase , whose share price has risen more than 70% in just a few weeks.
"If cryptocurrency is going to define the future, it will be mined, minted and manufactured in America. If bitcoin goes to the moon, as they say, I want America to send it there," Trump said during the Bitcoin 2024 conference in Nashville.
Atkins' appointment is a signal of increased investment in blockchain and innovation as Trump takes office. Both men will take office on January 20, 2025, and according to President-elect Eric Trump's son, the administration doesn't want any people "like Gary Gensler" who will stifle innovation.
CNBC quoted Donald Trump Jr. as saying, "Every country in the world is embracing cryptocurrency," and America could be "left behind" if it doesn't embrace digital assets.
While Trump's vision of the U.S. as a cryptocurrency hub is bold, it remains to be seen how effective his plans to transform the cryptocurrency landscape will be, especially given regulatory concerns and global competition.
