Paul Atkins Discloses Crypto Assets Ahead of SEC Confirmation Hearing
Ahead of his confirmation hearing in front of the U.S. Senate Banking Committee tomorrow, Paul Atkins — President Donald Trump’s pick to lead the U.S. Securities and Exchange Commission (SEC) — disclosed having up to $6 million in crypto-related assets, prompting Sen. Elizabeth Warren (D-Mass.) to cry foul.
Warren’s Concerns and Call for Recusal
In a Sunday letter to Atkins, Warren stressed that the former SEC commissioner’s background as a consultant and lobbyist for the financial industry could create “significant conflicts of interest” if he is confirmed.
Warren urged Atkins to consider mitigating these potential conflicts of interest by recusing himself from any SEC matters involving his former clients, and agreeing not to do any lobbying, consulting or other work for any companies in the industry regulated by the SEC for at least four years after his departure from the agency. Her letter requests a written response from Atkins by Thursday.
Atkins’ Financial Disclosures
Atkins’ recent financial disclosures revealed a $328 million family fortune, largely stemming from his wife’s family ties to roofing supply giant TAMKO Building Products. His risk consultancy firm, Patomak Global Partners, was valued at between $25 and $50 million and he has promised to divest if confirmed. Atkins’ crypto-related assets were valued at up to $6 million, including equity in crypto custodian Anchorage Digital and tokenization firm Securitize.
Atkins pledged to divest from Off the Chain Capital within 120 days of his confirmation and resigned from his positions on the boards of the Digital Chamber of Commerce and the Token Alliance of the Chamber of Digital Commerce.
Changes in SEC Crypto Regulation Strategy
Atkins’ crypto ties contrast with former SEC Chair Gary Gensler, known for his “regulation by enforcement” approach. The current SEC leadership, led by Acting Chair Mark Uyeda and Commissioner Hester Peirce, have been revamping the agency’s crypto regulation strategy, hosting discussions with industry players and closing investigations and litigation against companies like Coinbase and Ripple.
However, investigations into Unicoin and Crypto.com are ongoing, indicating that not all cases pursued under Gensler have been resolved. The SEC has also ended probes into companies like Immutable and OpenSea, showcasing a shift in regulatory approach under new leadership.