Sen. Elizabeth Warren is challenging SEC Chair nominee Paul Atkins over his connections to the now-defunct crypto exchange FTX ahead of his upcoming confirmation hearing. Warren has raised concerns about Atkins’ involvement as an advisor to FTX and whether he turned a blind eye to the exchange’s misuse of customer funds.
Atkins, a known advocate for lighter regulation, served as an advisor to FTX before its collapse in November 2022. Warren pointed out that FTX was later exposed for fraudulent activities, yet Atkins did not sound any alarms. Instead, he criticized the regulatory environment for stifling crypto innovation post-collapse.
Warren’s letter to Atkins questioned how a seasoned financial expert like him failed to identify FTX’s risky practices. She also expressed apprehension about Atkins’ broader affiliations in the crypto industry, including advising the Chamber of Digital Commerce, raising concerns about potential bias towards the sector in his regulatory decisions at the SEC.
In addition to his ties to FTX, Warren has asked Atkins to disclose his compensation from the exchange and whether any of it has been reclaimed during bankruptcy proceedings. She also inquired about his knowledge of financial connections between FTX and Alameda Research, as well as any potential mingling of customer funds.
Furthermore, Warren has pressed Atkins on how he plans to enforce securities laws impartially, especially in light of recent SEC decisions to drop enforcement cases against major crypto players. She also raised concerns about market manipulation and insider trading cases involving government officials, including the President and his associates with ties to digital assets.
As Atkins prepares for his confirmation hearing before the Senate Banking Committee, Warren’s scrutiny underscores the importance of ensuring regulatory integrity and impartiality in overseeing the crypto industry. The outcome of Atkins’ nomination could have significant implications for the future of crypto regulation in the United States.