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Trump Picks Atkins as SEC Chair 12/05 06:06
(AP) -- President-elect Donald Trump announced Wednesday that he intends to
nominate cryptocurrency advocate Paul Atkins to chair the Securities and
Exchange Commission.
Trump said Atkins, the CEO of Patomak Partners and a former SEC
commissioner, was a "proven leader for common sense regulations." In the years
since leaving the SEC, Atkins has made the case against too much market
regulation.
"He believes in the promise of robust, innovative capital markets that are
responsive to the needs of Investors, & that provide capital to make our
Economy the best in the World. He also recognizes that digital assets & other
innovations are crucial to Making America Greater than Ever Before," Trump
wrote on Truth Social.
The commission oversees U.S. securities markets and investments and is
currently led by Gary Gensler, who has been leading the U.S. government's
crackdown on the crypto industry. Gensler, who was nominated by President Joe
Biden, announced last month that he would be stepping down from his post on the
day that Trump is inaugurated -- Jan. 20, 2025.
Trump, once a crypto skeptic, had pledged to make the U.S. "the crypto
capital of the planet" and create a "strategic reserve" of bitcoin. Money has
poured into crypto assets since he won. The value of bitcoin, the largest
cryptocurrency, passed $100,000 Wednesday. And shares in crypto platform
Coinbase have surged more than 70% since the election.
Paul Grewal, chief legal officer of Coinbase, congratulated Atkins in a post
on X.
"We appreciate his commitment to balance in regulating U.S. securities
markets and look forward to his fresh leadership at (the SEC)," Grewal wrote.
"It's sorely needed and cannot come a day too soon."
Congressman Brad Sherman, a California Democrat and a senior member of the
House Financial Services Committee, said he worries Atkins would not
sufficiently regulate cryptocurrencies as SEC chair.
"He'd probably take the position that no cryptocurrency is a security, and
hence no exchange that deals with crypto is a securities exchange," Sherman
said. "The opportunity to defraud investors would be there in a very
significant way."
Atkins began his career as a lawyer and has a long history working in the
financial markets sector, both in government and private practice. In the
1990s, he worked on the staffs of two former SEC chairmen, Richard C. Breeden
and Arthur Levitt.
His work as an SEC commissioner started in 2002, a time when the fallout
from corporate scandals at Enron and WorldCom had turned up the heat on Wall
Street and its government regulators.
Atkins was widely considered the most conservative member of the SEC during
his tenure at the agency and known to have a strong free-market bent. As a
commissioner, he called for greater transparency in and analysis of the costs
and benefits of new SEC rules.
He also emphasized investor education and increased enforcement efforts
against those who steal from investors over the internet, manipulate markets,
engage in Ponzi schemes and other types of fraud.
At the same time, Atkins objected to stiff penalties imposed on companies
accused of fraudulent conduct, contending that they did not deter crime. He
caused a stir in the summer of 2006 when he said the practice of granting stock
options to executives before the disclosure of news that was certain to
increase the share price did not constitute insider trading.
U.S. Rep. Patrick McHenry, a North Carolina Republican and chairman of the
House Financial Services Committee, said Atkins has the experience needed to
"restore faith in the SEC."
"I'm confident his leadership will lead to clarity for the digital asset
ecosystem and ensure U.S. capital markets remain the envy of the world,"
McHenry posted on X.
Atkins already has some experience working for Trump. During Trump's first
term, Atkins was a member of the President's Strategic and Policy Forum, an
advisory group of more than a dozen CEOs and business leaders who offered input
on how to create jobs and speed economic growth.
In 2017, Atkins joined the Token Alliance, a cryptocurrency advocacy
organization.
Crypto industry players welcomed Trump's victory in the hopes that he would
push through legislative and regulatory changes that they've long lobbied for.
Trump himself has launched World Liberty Financial, a new venture with
family members to trade cryptocurrencies.
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