Former commissioner of the United States Securities and Exchange Commission (SEC) Paul Atkins has emerged as a leading candidate to succeed Gary Gensler as the SEC Chair under President-elect Donald Trump’s new administration.
Atkins, known for his pro-crypto stance and critical views on regulatory overreach, could signal a significant shift in the SEC’s approach to digital assets and blockchain innovation.
A Forward-Thinking Candidate
FOX journalist Eleanor Terrett noted in an X post that Atkins stands out as both well-versed in crypto and highly knowledgeable about the SEC’s structure and processes, having previously served as a commissioner and a staff member during the tenure of Richard C. Breeden and Arthur Levitt.
The post also explained that Atkins is regarded as someone who can champion a forward-thinking innovation strategy while restoring the agency to the “gold standard” that many Republicans believe diminished during Gary Gensler’s tenure as chair.
Under his ruling, the US could see a shift toward a regulatory framework that encourages innovation in the crypto space, potentially countering accusations of overregulation leveled at the SEC’s current leadership.
Atkins’ track record suggests he may take a more measured approach. He has previously advocated for clear and practical rules, which could align well with industry calls for a more collaborative relationship with regulators. His potential leadership is seen as an opportunity to foster innovation while maintaining necessary investor protections.
The announcement comes after Trump nominated Jay Clayton, the former SEC chairman, as the new US Attorney for the Southern District of New York. Trump noted that Clayton is a highly respected business leader, counsel, and public servant who received Engineering and Law degrees from the University of Pennsylvania and an Economics degree from the University of Cambridge.
According to Bloomberg, Trump is reportedly exploring creating a new White House role focused on crypto policy. He is also allegedly evaluating the possibility of moving the regulation of cryptocurrencies and digital trading platforms from the SEC to the Commodity Futures Trading Commission (CFTC).
Not a Good Leadership
Under Gensler, the SEC has been criticized for pursuing aggressive lawsuits against major crypto players, such as Coinbase, Binance, Kraken, and Ripple, while offering little regulatory clarity. Many industry leaders argue that this approach has stifled innovation and pushed blockchain companies.
As such, Singapore-based crypto exchange Crypto.com filed a lawsuit against the SEC. The firm noted in its lawsuit that the SEC had overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.