Donald Trump picks pro-crypto lawyer Paul Atkins to head US Securities and Exchange Commission. Who is he?
Donald Trump has appointed Paul Atkins, a pro-crypto former SEC commissioner, to lead the SEC. Known for advocating less regulation, Atkins' leadership could shift the agency's focus from Gensler's stringent enforcement to fostering innovation in capital markets and digital assets.
Paul Atkins, a veteran financial regulator and a crypto advocate, is President-elect Donald Trump’s choice to lead and possibly overhaul the US Securities and Exchange Commission.
The agency is responsible for supervising the US securities markets and investments. Gary Gensler, the current chairman, has spearheaded the crackdown on the cryptocurrency industry under the Joe Biden administration.
Explaining his choice of Atkins for the position, Trump said that the former SEC commissioner, known for his stance against excessive market regulation, is a “proven leader for commonsense regulations.”
“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 recognises that digital assets & other innovations are crucial to Making America Greater than Ever Before,” he wrote on Truth Social.
Who is Paul Atkins?
Paul Atkins, a former SEC commissioner, is a cryptocurrency advocate and the founder and CEO of Patomak Partners.
He founded Patomak Global Partners, a consulting firm for major financial industry clients, after he left the US SEC at the end of the George Bush administration.
Patomak has since risen to become one of the most prominent sounding boards for banks, trading firms, fintechs and other financial companies seeking guidance on how to influence and respond to Washington’s edicts and investigations.
“He’s the godfather of conservative capital markets ideology and mentor to a generation of policymakers,” Bloomberg quoted Tyler Gellasch, president of the Healthy Markets Association, a trade group comprising exchanges, institutional investors and other financial firms.
At both the SEC and in the private sector, Atkins has been involved in some of the biggest and most contentious financial policy issues, such as the influence of proxy advisers on corporate boards and the costs of “disclosure overload,” as well as policies to encourage capital formation.
He has testified before Congress on ways to restructure the agency’s operations and reduce what some industry participants consider duplicative or overly burdensome regulations.
More recently, Atkins has been a strong proponent of digital assets and fintech companies.
As an SEC commissioner, Atkins spoke out against high penalties levied on companies, saying they ultimately hurt shareholders.
He also called out the SEC’s mandate to not only protect investors but to increase competition and efficiency in the markets.
The regulator “must not price those very investors out of our markets through burdensome regulations or eat up the fruits of their investments through nonsensical mandates,” Atkins said in a 2007 speech.
He also criticised parts of the sweeping reforms contained in the Dodd-Frank legislation that was enacted in the wake of the 2008 financial crisis.
He testified before a congressional committee about problems with certain big banks getting designated as systemically important financial institutions and the “grab bag” of public company disclosure provisions contained in the law.
Paul Atkins vs Gary Gensler
Paul Atkins’ leadership would likely be in sharp contrast with Gary Gensler, who rolled out one of the most ambitious SEC agendas in recent memory. Some of Gensler’s marquee rule-makings, however, got stymied by legal challenges.
The SEC under Gensler also levied big fines for regulatory missteps, with record penalties for financial firms using unofficial communication devices to conduct business.
Business groups, especially the crypto industry, often complained the SEC under Gensler enacted regulation by enforcement instead of first creating clear rules of the road.
(With agency inputs)
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Business NewsNewsUs NewsDonald Trump picks pro-crypto lawyer Paul Atkins to head US Securities and Exchange Commission. Who is he?
First Published:5 Dec 2024, 06:32 AM IST
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