Why Paul Atkins as SEC Chair Is a Big Deal for Crypto

Donald Trump’s second term as the president of the United States is set to bring in a swathe of changes. Crypto community members were most excited about Trump’s promise to remove Gary Gensler as the U.S. Securities and Exchange Commission (SEC) chairman.

Since taking office in April 2021, chair Gensler has led an aggressive crackdown on the crypto sector. He consistently sparked the ire of crypto enthusiasts by maintaining that most cryptocurrencies are securities and targeting crypto companies and decentralized finance (DeFi) projects.

After Trump’s election win, Gensler announced he will voluntarily step down as SEC chair on January 20, 2025, making way for a pro-crypto successor in Paul Atkins.

Who is Paul Atkins, and why is the change at the SEC a big deal for crypto? Let’s find out.

Table of Contents Table of Contents

1. Key Takeaways
2. Who is Paul Atkins?
3. Is Paul Atkins a Crypto Advocate?
4. What Can Crypto Investors Expect from Atkins-led SEC?
5. The Bottom Line
6. FAQS
7. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Who is Paul Atkins?
3. Is Paul Atkins a Crypto Advocate?
Show Full Guide
4. What Can Crypto Investors Expect from Atkins-led SEC?
5. The Bottom Line
6. FAQS
7. References

Who is Paul Atkins?

Paul Atkins is a former SEC commissioner who served under President George W. Bush between August 2002 to 2008.

Atkins began his career as a lawyer focusing on public and private securities offerings and M&A transactions for U.S. and foreign clients. He received his Juris Doctor (JD) degree from Vanderbilt University School of Law in 1983.

Atkins is also the chief executive officer of an advisory and risk management firm called Patomak Global Partners. The company has assisted clients in filing Bitcoin and Ethereum ETP applications, stablecoin projects, and regulatory comment letters.

In early December 2024, incoming President Trump announced the nomination of Atkins to be the next chairman of the SEC.

For context, the SEC has five commissioners appointed by the U.S. president. The president also chooses one of the commissioners as chairman. No more than three commissioners can belong to the same political party.

Is Paul Atkins a Crypto Advocate?

Atkins is known for his crypto-friendly stance.

When Atkins was appointed as the co-chair of a newly established organization called the Token Alliance in 2017, he called cryptocurrencies a ”new and exciting asset class.” In 2019, he was an advisor for the stablecoin platform Reserve Protocol.

Later in 2020, Atkins was appointed to the board of advisors of The Chamber of Digital Commerce – the world’s first and largest blockchain trade association. Upon appointment, Atkins called for a “smart regulatory policy” for the cryptocurrency and blockchain industry.

“The Chamber has been a leader in seeking to bring about regulatory clarity for token projects, and I am honored to continue working with the Advisory Board in a broader capacity,” he added.

We have a lot of work to do at the SEC to advance free markets, capital formation, investor choice, and innovation. I'm delighted that Paul Atkins will be returning to lead the effort. Having worked for him during his last stint at the agency, I cannot think of a better person…

— Hester Peirce (@HesterPeirce) December 4, 2024

In a February 2023 interview with Free the People, Atkins explained how he thought the SEC should approach crypto regulations.

“If the government, if the SEC were more accommodating and would deal straightforwardly with these various firms (overseas crypto exchanges such as Binance), I think it would be a lot better to have things happen here in the U.S. rather than outside,” Atkins said.

Atkins also expressed his views on how the SEC can be more supportive of crypto innovation, saying:

“We have this construct and it’s a very creaky construct with respect to financial services regulation — lots of different players, lots of costs that are added, lots of ways in which the rules impede financial innovation.

“So that’s one reason why the SEC should be there with its ears to the ground to figure out which way things are moving. And let’s try to accommodate activity that is not criminal and enable markets to flourish because if it challenges incumbents and it helps to bring down the cost for investors and for people who are trying to raise capital, I mean, that’s the reason why we have financial markets.”

President-elect @realDonaldTrump has officially nominated Paul Atkins to be the chair of the SEC. Last year, he sat down with @mkibbe to discuss Crypto and what the proper role of the SEC is. pic.twitter.com/zyhye3yW3s

— Free the People (@freethepeople) December 4, 2024

What Can Crypto Investors Expect from Atkins-led SEC?

Here are some predictions on what crypto investors can expect from the SEC with Paul Atkins at the helm.

Resolving Crypto’s Security vs. Commodity Status

Crypto advocates have been pushing regulators to provide clear disclosure standards to differentiate securities and commodities within the crypto sector. Atkins’ experience with The Chamber of Digital Commerce and Token Alliance could be key.

Drawing a Line Between the SEC and CFTC

The two regulators have been vying for the power to regulate the multi-trillion-dollar crypto industry. Clarity on the classification of digital asset securities and commodities will help ease regulatory uncertainties faced by crypto entrepreneurs and investors.

Safe Harbor for Digital Asset Projects

In the past, Atkins has highlighted SEC Commissioner Hester Peirce’s efforts to create a “safe harbor” that provides crypto developers with a three-year grace period within which they are exempted from the registration provisions of the federal securities laws.

Commissioner Peirce put forward the accommodative proposal just as Chair Gensler made his way to the office. However, the proposal never saw the light of day.

Room for Crypto Innovation

Atkins has expressed views on how the SEC can be accommodative to crypto innovation to help financial markets flourish.

Making America a Crypto Hot Bed

Atkins has hinted at how clarity on the crypto regulation front will help the U.S. attract crypto companies and projects while protecting investors and keeping them well-informed about market risks.

The Bottom Line

Despite Gensler’s hostility towards crypto, the total crypto market cap more than doubled during his term as the SEC chair from $1.82 trillion in April 2021 to $3.73 trillion in December 2024.

Will the crypto industry accelerate its growth under the authority of a pro-crypto U.S. president and SEC chair? We will get back to you on this in 2029.

FAQS