Crypto Industry Execs Endorse Trump’s Pick for SEC Chair, Paul Atkins

Executives from leading cryptocurrency companies have expressed strong support for former SEC Commissioner Paul Atkins as President-elect Donald Trump’s nominee to lead the Securities and Exchange Commission (SEC) after Gary Gensler’s departure. Atkins, who served as an SEC commissioner from 2002 to 2008 under President George W. Bush, has received praise from the crypto community for his potential to bring a more collaborative and transparent approach to regulation.

Positive Reception from Crypto Industry Leaders

In a December 5 interview with Bloomberg, Katherine Dowling, general counsel at Bitwise Asset Management, called Atkins a “great choice” to head the SEC. Dowling highlighted his ability to work effectively with lawmakers and regulators, suggesting that he could be less “antagonistic” than Gensler, who will step down as SEC chair on January 20.

“We’re very much looking forward to someone who can hit the ground running, work with the other commissioners, and hopefully engage in dialogue with the [Commodity Futures Trading Commission] and lawmakers,” Dowling said. She emphasized the need for regulatory clarity on issues like stablecoins and market structure, which have been key concerns for the crypto industry.

Atkins would need to be confirmed by the U.S. Senate, where Republicans will hold a slim majority in 2025. Despite the confirmation process, his nomination has sparked optimism in the cryptocurrency sector.

Support from Ripple and Coinbase

Atkins' potential nomination has garnered additional support from prominent figures within the crypto industry. Ripple Labs CEO Brad Garlinghouse, whose company is involved in an ongoing legal battle with the SEC, tweeted that Atkins would “bring common sense back to the agency.” Ripple was one of the first cryptocurrency firms targeted by the SEC, with the commission filing a lawsuit in December 2020 alleging that Ripple's use of the XRP token amounted to an unregistered securities offering. Although a judge found Ripple liable for $125 million in August, the case is still under appeal, and its future could be influenced by a new SEC chair.

Coinbase's Chief Legal Officer, Paul Grewal, also praised Trump’s choice of Atkins, calling it “sorely needed.” Coinbase itself is currently facing a lawsuit filed by the SEC in June 2023 over alleged violations related to unregistered securities.

Atkins' Approach to Crypto Regulation

Atkins, who currently serves as CEO of Patomak Global Partners and is an advisor for the blockchain advocacy group Digital Chamber, has been involved with the crypto industry. His previous statements suggest that he could be more receptive to crypto firms than Gensler. In a February 2023 interview, Atkins stated that the SEC could potentially be “more accommodating” to crypto companies to foster growth in the U.S. crypto sector.

If confirmed, Atkins would inherit a crypto landscape that has long sought regulatory clarity. His approach to digital asset regulation will be closely watched by the industry, especially as it deals with ongoing legal and regulatory challenges.

While it remains to be seen how Atkins will navigate the evolving crypto market, the initial response from the industry is one of cautious optimism. As the SEC faces increasing pressure to provide clear and consistent guidance, the crypto community hopes that Atkins’ leadership will bring stability and a more balanced regulatory environment to the sector.