Key takeaways
- Paul Atkins is the Donald Trump SEC nomination to become the new SEC chair, signaling an immediate shift to more crypto-friendly regulation in the US.
- The Trump administration’s financial policy is expected to push for reducing barriers to capital and crypto markets, which Paul Atkins’ policies are likely to favor.
- Paul Atkins’ biography includes a long history in financial regulation and a previous term as an SEC commissioner and adviser for fintech startups.
- This Trump SEC pick points to a reset, with potentially significant regulation changes positioning the US as a world leader in crypto and blockchain technology.
Paul Atkins was chosen as the new United States Securities and Exchange Commission (SEC) chair by the president-elect after Gary Gensler announced he would resign on January 20th, 2025.
Gensler has been in charge since April 2021, taking a robust stance on regulating capital markets, which included cryptocurrencies. This led to more intense scrutiny of the crypto markets and an approach that drew heavy criticism from the industry.
Trump’s decision to appoint Atkins has been described as a new ray of hope within the industry. Atkins has previously spoken favorably of blockchain technology within financial systems, so many expect him to reduce SEC attacks on digital assets.
Coinbase chief legal officer Paul Grewal echoed this sentiment, saying the appointment was “sorely needed and cannot come a day too soon.”
Atkins has a history of lowering barriers to capital markets throughout his career, an approach that could help the US become a global technical innovator for blockchain.
Did you know? Former SEC attorney and president of the Healthy Market Association, Tyler Gellasch, describes Atkins as the “Godfather of Republican capital markets policy,” a Wall Street oversight reputation welcomed by many current and former colleagues at the SEC.
Paul Atkins’ background and professional career
So, who is Paul Atkins, and what does he bring to the table? He might have been a surprise selection, but he is certainly no newcomer to financial regulation, given his impressive track record.
He was born in Lillington, North Carolina, and grew up in Tampa, Florida. From a young age, he showed an impressive academic aptitude, graduating with his A.B. from Wofford College in 1980 before attending Vanderbilt University School of Law in 1983 and receiving his J.D.
Atkins’ law career began in New York as a lawyer for Davis Polk and Wardwell, focusing on US and international corporate clients. This work included private and public securities, mergers and acquisitions. He also helped financial service organizations improve their SEC regulatory compliance and assisted law enforcement with investigations into instances where investors had been wronged.
The latter part of his work was the stepping stone into the SEC in 1990 when he became a staff member for SEC chairs Arthur Levitt and Richard Breeden. During this period, he built his experience in regulation for shareholder communication, management accountability and individual investors, among other areas.
In addition, he is noted for his assistance in reducing the barriers for small and middle-market companies to enter the capital markets. By 2002, Atkins became a commissioner at the SEC until his term’s completion in 2008. He went on to launch his consultancy, Pantomak, advising fintech and crypto startups — which made his name as a leader in financial policy for blockchain and digital assets. In 2016, he was added to Trump’s business forum to advise on policy and strategy for economic issues.
Why did Trump choose Paul Atkins?
Atkins has had a distinguished career in finance, including at the SEC. His previous Trump financial nominations, no doubt, helped move his name to the top of the list.
Trump said on X that he was “delighted” to reveal Paul Atkins as his new SEC chair.
He recognized Atkins’ Wall Street influence as “a proven leader for common sense 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.”
There was an added nod to crypto, which was well-received by hordes of enthusiasts in the comments.
“He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before,” Trump concluded.
Did you know? In the seven days following Trump’s election victory on Nov. 5, the price of Bitcoin (BTC) surged more than $20,000 from around $67,000 to over $87,000 on Nov. 12.
Paul Atkins’ policies: SEC reforms and financial regulation
The appointment is a marked change from the incumbent SEC chair, Gary Gensler, under the Democratic administration of Joe Biden. Gensler used a hard-nosed approach to crack down on Wall Street and crypto, which upset industry executives.
Atkins could well use his pro-business SEC approach, along with regulatory expertise and knowledge, to revise many of Gensler’s regulations, including cryptocurrency accounting restrictions. It could signal a reset between regulators and crypto institutions in the US, with Atkins bringing a collaborative approach to policy.
Financial commentators, in particular, have pointed to his work as co-chair of the Token Alliance, where he assisted in building best practices for crypto issuance. At the same time, his role on the Chamber of Digital Commerce advisory board has helped stoke excitement.
In fact, crypto markets were fueled by the choice of Atkins. Within 24 hours, Bitcoin historically broke $100,000 for the first time. It was an apparent show of confidence that the incoming SEC chairman could free digital assets from their current chokehold and foster innovation. In short, the crypto industry could expect clarity, fairness and cooperation.
Did you know? The SEC filed an action against several major US crypto operators during Gensler’s reign, including Consensys, Coinbase and Kraken. Crypto-related cases made up 5%-8% of cases between 2021 and 2024
The US to become the crypto capital
Trump has promised to make the US “the crypto capital of the planet,” plans that may include a Bitcoin strategic reserve. Since his election victory, money has flowed in the crypto markets and correlated assets like Coinbase, with its stock price surging over 70% in just weeks.
“If crypto is going to define the future, it’s going to be mined, minted and made in America. If Bitcoin is going to the Moon, as they say, I want it to be America that sends it there,” Trump said during the Bitcoin 2024 conference in Nashville.
The appointment of Atkins is a signal to increase blockchain investment and innovation as Trump takes office. Both men will take their positions on Jan. 20th, 2025, and according to the president-elect’s son, Eric Trump, the administration doesn’t want any people “like Gary Gensler,” who would stifle innovation.
Donald Trump Jr. was quoted by CNBC, saying, “Every country in the world is embracing crypto,” and America could be “left behind” if it doesn’t get digital assets.
WhileTrump’ss vision for the US as a crypto hub is bold, it remains to be seen how effective his plans will be in reshaping the crypto landscape, especially considering regulatory challenges and global competition.