President Donald Trump has nominated Paul Atkins as the new chair of the Securities & Exchange Commission (SEC). Atkins is no stranger to the agency, as he was chair of the Commission from 2002 to 2008, appointed by George W. Bush. He will assume his role once confirmed by the Senate, which is expected to happen quickly.
On January 20, 2025, the SEC issued a statement announcing the departure of Chair Gary Gensler. Until such time that Atkins is confirmed by the Senate, President Donald Trump has selected Mark Uyeda, a Republican member of the SEC, to act as chair of the agency.
Gensler has been most criticized for adopting a non-business friendly approach with regard to the cryptocurrency industry. While Gensler led the SEC, the agency brought 100 crypto-related enforcement actions. Comparatively, while Jay Clayton led the SEC, the commission brought only 80 crypto-related enforcement actions.
It is not only the number of crypto-related enforcement actions which are taken into consideration when evaluating Gensler, but also his approach of implementing regulation through enforcement actions. Various sources have indicated that post Gensler’s departure, the SEC is expected to immediately begin overhauling cryptocurrency policy.
Gensler maintained that most crypto currencies qualify as securities under the Federal securities laws. Atkins is known to be crypto-friendly, and his nomination is a great sigh of relief for the industry. It’s assumed his regulatory approach will be much more supportive of cryptocurrencies, boosting investors’ spirits.
Developing Standards for Regulating Cryptocurrencies
Atkins serves on the board of advisors of the Digital Chamber of Commerce (Chamber), which advocates for the development of standards that will support the appropriate regulation of cryptocurrencies.
The Chamber has outlined its top SEC priorities in the first 3 months of 2025.
Decreasing emphasis on litigation, and ending all investigations related to digital assets, except in matters that involve actual fraud, investor loss, or risk of imminent harm.
Coordinating with the Commodity Futures Trading Commission, Congress, and the Trump administration to define when a digital asset falls under SEC jurisdiction, eliminating the need for the Howey Test to play a role in the determination process.
Withdrawal of the SEC’s “Safeguarding Rule,” which changes the rules governing registered investment advisors and the protection of client assets.
Establish a “reasonable path” to registration for digital-asset businesses.
Encourage Capital Raising
Atkins wants to support crypto companies by simplifying exemptions for private placements and making disclosure obligations more streamlined. This should make raising capital for these businesses much easier.
A Critic of Large Corporate Penalties
Atkins believes that burdening large corporations with hefty penalties punishes shareholders, rather than the intended goal of discouraging misconduct. This philosophy will more than likely influence how the SEC manages enforcement activities, especially involving crypto organizations.
Minimizing Regulation by Enforcement
Atkins has never been a fan of setting regulatory policy strictly by enforcement activities. Instead, he prefers providing guidance to market participants through public input, cost-benefit analysis, and adherence to statutory authority.
He favors smarter regulations to promote market efficiencies, and innovation, while still adequately protecting the public. Atkins’ past positions on these issues will certainly serve as a guide map for the road ahead.
Self Regulatory Organizations (SROs)
In the past, he has called for much more accountability with respect to SROs like Financial Industry Regulatory Authority, and the Public Company Accounting Oversight Board, and has been a harsh critic of the lack of rule making transparency involving these bodies. Atkins plans to implement much greater SEC oversight of SROs.
What Lies Ahead
In conclusion, while Paul Atkins will run the SEC much differently than Gary Gensler did, do not expect a complete overhaul of the agency. It is clear that Atkins’ goal is to operate the SEC in a way that values public interest, promotes innovation, and maximizes transparency. We expect that Atkins will make the SEC more business friendly and is likely to pursue a deregulatory agenda while easing up on the SEC’s enforcement activities.
