Donald Trump’s transition team has their eyes on Paul Atkins, a veteran financial regulator and staunch crypto supporter, as the next chair of the U.S. Securities and Exchange Commission (SEC).
Sources close to the discussions say Atkins is a frontrunner to replace outgoing chair Gary Gensler. Trump is expected to announce his decision soon, but nothing has been finalized yet.
Atkins is well-known in conservative financial circles and has a long track record of advocating for lighter regulations. He served as an SEC commissioner during George W. Bush’s administration and later founded Patomak Global Partners, a consulting firm for financial heavyweights.
Atkins’ crypto-forward approach
Atkins has testified before Congress, calling for changes in the SEC’s operations to eliminate redundant and overly burdensome rules. Atkins is seen as a key ally for the crypto industry, which has been frustrated with Gensler’s aggressive enforcement-first approach.
Under Gensler, the SEC launched crackdowns following crypto scandals, including the collapse of Sam Bankman-Fried’s FTX exchange. Gensler’s actions alienated much of the industry, what with him creating confusion rather than clarity.
Trump’s promise to “fire Gensler on day one” became moot after Gensler announced his resignation earlier this month, but the promise of a crypto-friendly SEC remains alive.
Trump campaigned on a pro-crypto platform, a dramatic turnaround from his previous dismissal of cryptocurrencies as scams. He vowed to build a strategic Bitcoin reserve, end what he called the “anti-crypto crusade,” and appoint regulators who support the industry.
Other names in the running
Current SEC Commissioner Mark Uyeda, former Commodity Futures Trading Commission (CFTC) chair Heath Tarbert, and corporate attorney Robert Stebbins are also being discussed. Robinhood’s top lawyer, Dan Gallagher, and legal experts like Norm Champ and Richard Farley are reportedly in the mix as well.
Trump’s team is weighing their options carefully, with input from industry leaders and political advisors. Discussions have been ongoing since his election win, and some insiders believe the decision could take weeks.
One dark horse in the race is Teresa Goody Guillén, a blockchain expert and former SEC official. Guillén’s background in both crypto and traditional finance has made her a favorite among blockchain advocates. She co-leads the blockchain practice at BakerHostetler and has pushed for balanced, clear regulations.
CFTC to get more power
Trump’s administration is also considering expanding the role of the CFTC in overseeing the crypto market. The CFTC, often overshadowed by the SEC, regulates the $20 trillion derivatives market but has been perceived as having a lighter regulatory touch.
Sources say Trump’s team wants the CFTC to take on a larger role, including regulating Bitcoin and Ethereum spot markets.
This could bring much-needed clarity to the industry. Currently, no single regulator oversees crypto spot markets, creating a patchwork of rules that frustrates both businesses and investors.
Former CFTC chair Chris Giancarlo, known as “Crypto Dad” for his support of blockchain, has endorsed the idea, saying the CFTC is ready to step up. “With adequate funding and under the right leadership, I think the CFTC could hit the ground running,” Giancarlo said.
Giving the CFTC authority over Bitcoin and Ethereum, which account for 70% of the global crypto market, would also mean regulating the exchanges where they’re traded. This could be a game-changer for companies like Coinbase and Binance, which have long called for clearer rules.
Over $130 million flowed from crypto companies to Trump’s campaign and other Republican candidates during the election. Industry leaders, including Coinbase CEO Brian Armstrong, have reportedly met with Trump’s team to discuss regulatory appointments. Armstrong is said to have advocated for candidates who would support innovation rather than stifle it.
Gensler, appointed by President Joe Biden in 2021, leaves behind a tragic legacy. His aggressive enforcement tactics made him a divisive, controversial figure.
Whoever takes the helm will inherit a daunting task. Pending Gensler-era rules need to be revisited, and the SEC must address longstanding issues like insider trading and misleading disclosures.
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