At a Glance

  • U.S. President-elect Donald Trump said on Wednesday he has selected business consultant and cryptocurrency industry lobbyist Paul Atkins to be the next chair of the U.S. Securities and Exchange Commission (SEC).
  • Atkins currently serves as CEO of risk management consulting firm Patomak Global Partners and co-chair of the Token Alliance at the Digital Chamber of Commerce, a cryptocurrency industry lobbying group. He previously served as an SEC commissioner under President George W. Bush.
  • "Paul is a proven leader for common-sense regulation," Trump said in a statement on Truth Social. "He believes in the promise of robust, innovative capital markets that are responsive to the needs of investors, and that provide capital to make our economy the best in the world." A link to the statement is in the original article.

Deep Dive

The announcement comes as current SEC Chair Gary Gensler has announced he will step down on January 20. Trump and Republican lawmakers have criticized Gensler's strict regulation, including the agency's approach to cryptocurrency companies and its enforcement of securities laws.

Among Gensler's most criticized actions, he pushed the commission this year to approve a rule requiring companies to disclose the impact of climate change on their finances, operations, and business strategy.

Trump's choice of Atkins to lead the agency drew praise from Senator Tim Scott (R-S.C.), the top Republican on the Senate Banking, Housing, and Urban Affairs Committee.

"Paul Atkins has the necessary experience to lead the agency out of Gary Gensler's disastrous tenure and help revitalize our nation's capital markets system—which is essential to our economic growth, job creation, and innovation," Scott said in a statement.

Richard Hong, a partner at law firm Morrison Cohen LLP, predicted that Atkins' confirmation would bring relief to defense lawyers. "He is an extremely intelligent and conservative lawyer who understands that the SEC's 'regulation by enforcement' cannot continue—whether in the crypto space or other areas of the SEC," Hong said in an emailed statement. Hong previously served as an SEC trial lawyer during Atkins' tenure as commissioner.

Dennis Kelleher, CEO of Better Markets, a nonprofit organization promoting financial reform, criticized the nomination, calling Atkins a "deregulation zealot and industry cheerleader."

Kelleher said in a statement that during Atkins' tenure as an SEC commissioner from 2002 to 2008, he "supported deregulation that contributed to the devastating 2008 crash." "He learned no lessons and left the SEC to start a consulting firm representing clients against re-regulation of the financial industry to protect investors and prevent another crash," Kelleher added.

Editor's note: Gabrielle Salsbery, a reporter at Banking Dive, a sister publication of CFO Dive, contributed to this article.