Trump picks former SEC commissioner Paul Atkins to run agency
Atkins is prominent Washington insider with SEC experience
Replaces Biden's Gary Gensler
Expected to take a softer approach to crypto
Adds progressive group reaction in final paragraph
By Lawrence Delevingne and Douglas Gillison
WASHINGTON, Dec 4 Reuters) -U.S. Republican President-elect Donald Trump on Wednesday said he would nominate Paul Atkins to run the Securities and Exchange Commission, putting a prominent and experienced conservative Washington insider atop Wall Street's major regulator.
The appointment of Atkins, a lawyer and former top SEC official who has advocated for de-regulation, spells relief for Wall Street and the crypto industry which have chafed under President Joe Biden's hard-charging SECChair Gary Gensler.
Hisnomination stands in contrast to Trump's cabinet picks, many of whom are loyalists with few qualifications for the job.
Atkins "believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors," Trump wrote in a post on his social media platform.
"He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before."
Atkins and his representatives did not immediately respond to a request for comment.
Gensler, who is stepping down on Jan. 20, inked more than 40 rules aimed at boosting transparency, reducing risks, and stamping out conflicts of interest on Wall Street and sued multiple crypto firms he alleged were flouting SEC rules.
Atkins is expected to review many of Gensler's rules and enforcement actions wending their way through the courts, adopt a softer touch on crypto, and pursue rule changes aimed at promoting capital formation. Industry groups applauded his nomination, while some progressive groups warned he may be too soft on Wall Street.
"His distinguished record, years of experience in the industry, and history of service at the SEC make him a supremely well qualified nominee," Eric Pan, the chief executive of investor lobby group the Investment Company Institute, said in a statement.
Atkins is currently the chief executive at Patomak Global Partners, a Washington-based strategic and risk management advisory business he founded in 2009.
The well-connected firm's leaders, many of them former federal regulators, consult with banks, fintech companies and investment firms, among others, according to its website. Atkins' clients have included Deutsche Bank as a court-appointed monitor and the Chicago Board Options Exchange as an expert witness, court records show.
Atkins served on Trump's transition team in 2016, when he was also viewed as a contender to lead the SEC, Reuters reported at the time. He was then among the high-profile business executives on a short-lived advisory council for President Trump.
CRYPTO FRIEND?
The crypto industry, which poured money into Trump's campaign, has pushed for an industry-friendly SEC chair that would end Gensler's crackdown, and industry executives had said ahead of the nomination that he would be a good pick.
Atkins has been involved in crypto policy as co-chair of the Token Alliance, which works to "develop best practices for digital asset issuances and trading platforms," and the broader blockchain trade association, the Chamber of Digital Commerce, as a member of its advisory board.
"This is a strong, forward-leaning pick. We look forward to a new SEC administration focused on promoting responsible innovation," Ji Kim, Chief Legal and Policy Officer at the Crypto Council for Innovation, said in a statement.
In the early 1990s, he was a staffer for two former chairmen, Richard Breeden and Arthur Levitt. In 2002, Atkins was picked byPresident George W. Bush to be one of the agency's five politically-appointed commissioners, a role he held until 2008. At the SEC, Atkins said his "overriding philosophy" was based on the "free market system," and in the role he opposed what he saw as unproductive increases in oversight of hedge funds, internal audit controls, and stock trading rules known as Reg NMS.
In line with the Trumpadministration's plans to challenge so-called "woke" capitalism, Atkins has criticized socially conscious corporate shareholder activism - an issue the SEC has embraced in recent years with climate risk disclosures and other rules on environmental, social and governance investing.
He has also criticized overzealous SEC corporate enforcement actions, arguing they only hurt shareholders twice over.
Bartlett Naylor, financial policy advocate at Public Citizen, flagged worries Atkins may try to unpick important investor protections, adding: "We obviously hope he understands that, if confirmed, he will be expected to work on behalf of average Americans, not his consulting clients, crypto or otherwise."
Reporting by Lawrence Delevingne; Additional reporting by Michelle Price and Douglas Gillison in Washington; Editing by Rosalba O'Brien and Diane Craft
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
