The U.S. Senate confirmed Paul Atkins as commissioner of the Securities and Exchange Commission (SEC), in a 52-44 vote late Wednesday.
It’ll be the second time that Atkins will lead the SEC—the first being from 2002 to 2008 under former President George W. Bush. He also previously served as a member of President Donald Trump’s economic advisory group during his first term.
Under his lead, the SEC is posed to cut down on strict regulation for cryptocurrencies and grow a friendlier rapport with crypto companies. Atkins is the founder and CEO of Patomak Global Partners, a consulting firm that works with clients in the financial and cryptocurrency industries.
His predecessor, former Commissioner Gary Gensler under the Biden Administration, grew a reputation for his stern attitude towards the digital investments.
“Paul Atkins brings a wealth of experience and dedication to safeguarding our capital markets. His tenure will mark a pivotal moment to roll back harmful Biden-era policies, promote capital formation, and enhance opportunities for retail investors,” stated Senate Banking Committee Chairman Tim Scott (R-SC), in a statement following the vote. “Chairman Atkins will also provide regulatory clarity for digital assets, allowing American innovation to flourish, and ensuring we remain competitive on the global stage.”
His close affiliation with crypto organizations has drawn skepticism from some lawmakers, who say his ties could lead to conflicts of interest. During his confirmation hearing in March, Sen. Elizabeth Warren (D-MA) accused Atkins of softening markets risks prior to the global financial crisis in 2008, weakening SEC rules, and questioned his involvement with the failed crypto exchange platform FTX.
Meanwhile, the SEC in past months has shifted its attitude on cryptocurrencies under Trump’s administration and following Gensler’s resignation in January. Mark Uyeda, a Republican SEC Commissioner, was later named acting SEC commissioner by Trump, to serve until Atkins’ confirmation. Uyeda, along with fellow GOP Commissioner Hester Peirce, have both expressed supportive views on cryptocurrencies and previously criticized Gensler for imposing stricter regulation on the digital assets.
Shortly after his inauguration, Trump signed an executive order promoting the use of digital assets by opening public blockchain networks.
Following news of his confirmation, the Investment Company Institute (ICI) and Insured Retirement Institute (IRI) issued statements congratulating Atkins. The ICI shared its hope in working with Atkins to progress policies it had recently recommended.
“We hope Chairman Atkins will take swift action on policies recommended by the ICI in the interest of 120 million American investors. These policies include actions that will allow funds to have both ETF and mutual fund share classes, improve access for retail fund investors to private market strategies, and reform the fund proxy system,” said ICI President Eric Pan.
In a statement, the IRI said it will encourage the SEC to reconsider and ultimately withdraw proposals introduced by the Biden administration, including one proposed rule on predictive data analytics and the proposed amendments to the registered investment advisor (RIA) custody rule.
The IRI also said it would recommend for the SEC to adopt electronic delivery as a default method for required disclosures.
SEE ALSO:
Trump Signs Executive Order Supporting Crypto
Trump Nominates Crypto Backer Paul Atkins to Lead SEC
Trump Taps Interim Leaders for SEC, DOL
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.