KEY POINTS
- Trump specifically praised Atkins for his tested leadership in 'common sense regulations'
- Atkins is known for avoiding enforcement-first strategies in finance regulation
- Some crypto leaders believe he will usher in a more 'balanced' regulatory process
- Ripple's Brad Garlinghouse said Atkins is an 'outstanding choice' for the role
U.S. President-elect Donald Trump has officially nominated former Securities and Exchange Commission (SEC) Commissioner Paul Atkins to replace outgoing Chair Gary Gensler, marking a new era in the digital assets space.
Trump had nothing but good words for the former Commissioner, whom the Trump transition team interviewed last week as a top candidate for the position. The incoming President called Atkins "a proven leader for common sense regulations," and someone who recognizes the role cryptocurrencies and digital assets will play toward "Making America greater than ever before."
Atkins's Crypto and Regulatory Views
During his tenure as a Commissioner from 2002 through 2008, he was known for going against heavy-handed enforcement strategies in regulation.
In 2018, he said that there is true utility in blockchain-based payment networks such as that of Bitcoin. He said that the anonymity concerns over crypto markets were "misplaced," but he did acknowledge at the time that concerns around excessive speculation in crypto markets were understandable.
Crypto Community Gives Potential New Chair a Thumbs Up
The nomination of Atkins comes at a critical time in the industry. Crypto firms have been in legal combat with the SEC since Gensler took over the regulatory agency in 2021 over his insistence that crypto coins are securities that lack regulation.
For crypto, Atkins's arrival is an opportunity to build trust with American regulators after some four years of disconnect.
Brad Garlinghouse, the CEO of Ripple, which was one of the major crypto-associated firms that suffered the brunt of the Gensler SEC's concern, believes Atkins is "an outstanding choice."
An outstanding choice – Paul Atkins at the helm of the SEC will bring common sense back to the agency. Along with Hester Peirce and Mark Uyeda, it’s time to swiftly and definitively end the prohibition era on crypto, restoring freedom of choice, economic growth, and innovation. https://t.co/w8Rqrnubyj
— Brad Garlinghouse (@bgarlinghouse) December 4, 2024
He expects that Atkins will work alongside Republican Commissioners Hester Peirce and Mark Uyeda to "swiftly and definitively end the prohibition era on crypto."
Reserve Protocol co-creator Nevin Freeman said he believes Atkins is an "open-minded person" who was "willing to jump in and work with crypto projects like us."
House Majority Whip Rep. Tom Emmer, a known crypto advocate, praised the ex-Commissioner's understanding that an enforcement-first approach toward regulating digital assets "is a losing strategy that has crippled American innovation."
Paul Atkins has extensive public and private sector experience and understands that “regulation by enforcement” is a losing strategy that has crippled American innovation.
— Tom Emmer (@GOPMajorityWhip) December 4, 2024
I look forward to working with him and @realDonaldTrump as we usher in a new era of American innovation.
Coinbase's Chief Legal Officer, Paul Grewal, who has called out Gensler and the SEC for its "regulatory overreach" multiple times over the years, congratulated Atkins for clinching the nomination. "We appreciate his commitment to balance in regulating U.S. securities markets," he said.
Many other crypto holders and prominent names in the industry showed an outpouring of support for Trump's new SEC chief pick, including ARK Invest's Cathie Wood.
Great day for #bitcoin and digital property rights! Incoming SEC Chairman Paul Atkins will free digital assets from Gary Gensler’s chokehold and protect private property rights in the digital world.
— Cathie Wood (@CathieDWood) December 5, 2024
Trump’s pick for SEC chair, Paul Atkins, believes in the free market. This will be very good for Bitcoin. pic.twitter.com/b7K6rsfXs7
— The ₿itcoin Therapist (@TheBTCTherapist) December 3, 2024
We have a lot of work to do at the SEC to advance free markets, capital formation, investor choice, and innovation. I'm delighted that Paul Atkins will be returning to lead the effort. Having worked for him during his last stint at the agency, I cannot think of a better person…
— Hester Peirce (@HesterPeirce) December 4, 2024
There were also some who said they will observe how Atkins behaves after taking on the role. After all, there was also optimism around Gensler when he was appointed to the position due to his previous blockchain and Bitcoin teachings.
