Kirkland and Ellis Partner Norm Champ discuss the future of the SEC chairman and Trump’s transition team on ‘Claman Countdown.’
President-elect Donald Trump has nominated Paul Atkins to replace Gary Gensler as the next chairman of the Securities and Exchange Commission.
Atkins is a well-known securities attorney, former SEC commissioner during the administration of former President George W. Bush and founder of financial consulting firm Patomak Global Partners. He also served as a policy adviser to Trump during his first presidency and that role, according to a senior member of the transition team, continued after Trump’s election on Nov. 5, paving the way for Atkins’ appointment as SEC chairman.
Trump made the announcement on his Truth Social account on Wednesday, calling Atkins a “proven leader of sensible regulations.”
FOX Business previously reported that the 66-year-old Atkins was the transition team’s top choice to succeed Gensler, who announced he would step down on Jan. 20. Sources tell FOX Business he accepted the job Monday at Mar-a-Lago, where he lives where Trump is in Florida. and the country party that served as the headquarters of his revolutionary party. Attending the meeting were Trump, Vice President-elect JD Vance and Vivek Ramaswamy.
Trump expressed Atkins’ embrace of crypto in announcing the move, which is further indication that the Trump SEC will withdraw its crackdown on digital assets and prioritize blockchain innovation as part of its regulatory agenda.
“He believes in the promise of strong, innovative capital markets that respond to the needs of investors, and provide the capital to make our economy the best in the world. He also recognizes that digital assets and other innovations are critical to making America greater. than ever before.”
Atkins did not immediately respond to a request for comment.
SEC Chairman Gary Gensler.
If the Senate confirms Atkins as expected, it will mark the beginning of a new era at the SEC, aimed at a sharp departure from Gensler’s rule, which many say was characterized by an aggressive, overly politicized governance agenda from the Commission. congressional authority to provide fair and orderly markets and to ensure investor protection.
Among Gensler’s most controversial laws was forcing public companies to accept certain Public Environmental Governance guidelines, including disclosing their carbon footprints. The Gensler years are also known for their enforcement policies – especially against the $3 trillion cryptocurrency industry, where the commission brought more than 100 enforcement actions.
SEC watchers expect Gensler’s agenda to change under Atkins, including the climate disclosure law being reviewed in federal court. This decision was announced by progressive groups and politicians, such as Massachusetts Senator Elizabeth Warren, but they faced widespread criticism from business groups for being expensive, difficult to implement and possibly illegal, since the security laws were not designed to force companies to implement a social policy, but to protect shareholders.
“Paul knows this organization; he knows the markets, and he knows what needs to be done. I expect him to hit the ground running,” said Jay Clayton, who served as Trump’s SEC chairman during his first term and is the president-elect’s nominee for U.S. Attorney for the Southern District of New York. York, the principal law enforcement agency of the Department of Justice.
Clayton, now a senior policy adviser at the white-shoe law firm Sullivan & Cromwell, said he expects Atkins to change the proxy voting process to mandate disclosure of potential conflicts of interest for advisers when recommending how investors should vote on various issues. He would also reverse Gensler’s climate plan that “was transferring power from shareholders to other states,” Clayton said.
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Patomak Global Partners LLC CEO Paul Atkins participates in a CEO strategy and policy discussion with then-President Trump at the Eisenhower Execution Office Building in Washington, DC, on April 11, 2017. (REUTERS/Joshua Roberts/File Photo / Reuters Images)
Part of the draw for Atkins to become a top executive on Wall Street, according to senior officials of the reform group, is his deep understanding of the $100 billion securities markets that fall under the SEC and its inner workings, gained from ten years of experience working at the SEC. organization. Atkins was appointed GOP commissioner in 2002 and served six years in the role alongside Republican Chair Harvey Pitt, William Donaldson and Christopher Cox. At the time, he advocated for more transparent and consistent regulation and enforcement, as well as easier access to financial markets. Prior to this, he worked for former GOP Chairmen Richard C. Breeden and Arthur Levitt.
Another selling point for Atkins is that he is pro-crypto, a quality that aligns with Trump’s promise to prioritize the search for an SEC chairman who will stand up to Gensler’s abuse of the industry. In addition to promising to “fire” Gensler on day one and make the US the “crypto capital of the planet,” Trump also promised to appoint a chairman who would “build the future, not block the future.”
Atkins, who has spoken publicly about the need to develop best practices for digital assets and the platforms they trade on, has served since 2017 as chairman of the Token Alliance – an industry-led initiative formed by former regulators, industry experts and advocates to promote the creation of digital assets. He also sits on the Advisory Board of the Digital Chamber of Commerce, a leading crypto advocacy group based in Washington, DC.
“Paul is uniquely positioned to support President-elect Trump’s vision to strengthen the US as a global leader in digital innovation,” said Cody Carbone, president of the Digital Chamber of Commerce. “Paul will not only bring experience and expertise in digital assets to the Commission, but he will bring the clarity this industry deserves Day 1. Home selection.”
Another industry source tells FOX Business that Atkins recently expressed a desire to let GOP Commissioner Hester Peirce, known as “Crypto Mom,” lead on crypto policy alongside GOP Commissioner Mark Uyeda. FOX Business previously reported that Peirce wants to lead an internal crypto team that will, in part, reevaluate the agency’s approach to digital assets and create an open dialogue with the industry. Peirce’s term ended in June, and it is unclear whether he wants to be re-elected to this position. Uyeda’s term will end in 2028.
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The logo of the Securities and Exchange Commission hangs on the wall at the SEC’s headquarters in Washington, DC (REUTERS/Jonathan Ernst/File Photo / Reuters Images)
When Trump takes office in January, he will be able to appoint at least three new commissioners, including two Republican candidates and at least one non-Republican, as SEC rules limit any one political party to three of the commission’s five seats. This means that, as he did with the Supreme Court, Trump will be able to overwhelm the SEC with decisions of his choosing, allowing the commission to favor a pro-business approach and a touch of light regulation.
“President-elect Trump made an excellent choice for SEC Chairman,” said Chris Giancarlo, who was head of the Commodity Futures Trading Commission during Trump’s first term. “Paul Atkins is widely recognized for his professional integrity and intelligence. As a former commissioner, he has a wealth of knowledge and respect for the agency. He will promote innovation in technology, crypto and digital finance after years of regulatory hostility. I am confident that Paul Atkins will return the SEC to its historic role in allowing capital formation and the growth of the American economy.”
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