Former US Securities and Exchange Commission (SEC) official Paul Atkins is set to testify before legislators in the Senate Banking Committee on March 27, as part of the Trump administration’s initiative to fill high-level government roles with the president’s selections.
Since US President Donald Trump was inaugurated on Jan. 20, the SEC, under the guidance of acting chair Mark Uyeda, has terminated multiple investigations and enforcement actions against prominent cryptocurrency companies, many of which had been entangled in legal battles for months or even years. Numerous analysts interpret the SEC’s recent decisions as the administration following through on its campaign commitments to the crypto sector, where certain individuals donated directly to the former presidential candidate or his inauguration fund after the Nov. 5 election.
The agency’s actions — including the declaration that memecoins are not securities — also represent a stark departure from the stance taken under previous chair Gary Gensler, leading many to speculate that the SEC during Trump’s term may foster a flourishing US crypto scene, largely devoid of regulatory oversight.
Atkins, who was chosen by Trump in December 2024 and formally nominated upon taking office, garnered backing from industry stakeholders at Coinbase and Ripple, both of which had pending enforcement actions initiated by the SEC. Those cases have now been dismissed.
Given the SEC’s apparent shift on crypto regulation and Trump’s possible conflicts of interest with the sector — stemming from his connections to the crypto firm World Liberty Financial and the introduction of his own memecoin — some legislators are likely to probe Atkins’ perspectives on digital assets during the confirmation hearing.
If the Senate endorses his nomination, Atkins could return to an SEC that will soon be entirely under Republican control, with Democratic Commissioner Caroline Crenshaw anticipated to depart by 2026.
It remains uncertain whether Atkins will secure enough votes to advance through the banking committee or a full Senate vote. Republicans command a 53-seat majority in the chamber, needing only 51 votes to ratify a nominee; except for former Representative Matt Gaetz for US Attorney General, they have shown no indication of opposing any of Trump’s nominees for essential government roles.
Democratic objections to Atkins’ nomination
Massachusetts Senator Elizabeth Warren, the leading Democrat on the banking committee who has frequently associated cryptocurrency with drug trafficking and other unlawful activities, expressed in a letter to Atkins dated March 23 that she had reservations about his prospective role at the SEC, particularly after his consulting firm, Patomak Global Partners, served as an adviser to the now-defunct crypto exchange FTX. He also acted as an adviser to the advocacy organization Chamber of Digital Commerce.
“Your substantial engagement with FTX and other lucrative crypto clients raises doubts regarding your approach to crypto oversight — as well as concerns about your level of awareness surrounding FTX’s illegal actions,” remarked Warren, adding:
“Your economic connections to the industries you are about to regulate generate significant concerns about your capacity to prevent conflicts of interest in your role as a regulator.”
Warren indicated that certain Senate members would probably inquire about Trump’s choice concerning the SEC’s recent dismissal of enforcement cases against crypto entities, the reports that Trump’s family negotiated with Binance regarding acquiring a stake in the company, as well as a potential pardon for former Binance CEO Changpeng Zhao, how Atkins plans to implement securities regulations on digital assets if confirmed, and the commission’s recent stance that memecoins do not constitute securities.
She suggested that Atkins may have also had discussions with Republican SEC commissioners Uyeda and Hester Peirce post-nomination.
Related: SEC is awaiting a chair before establishing crypto agenda — Hester Peirce In advance of his hearing, Atkins has already met with Republican legislators on the committee, including Wyoming Senator Cynthia Lummis. Cointelegraph reached out to Lummis’ office for comments on Atkins’ nomination but did not receive a response prior to publication. If his nomination progresses through the Banking Committee and the Senate, Atkins would likely be confirmed for a term concluding in June 2031, succeeding Uyeda as chair. Besides the commission’s cessation of investigations and enforcement actions, the SEC acting chair has recommended eliminating rules that require cryptocurrency companies to register with the agency. Magazine: Ripple claims SEC lawsuit ‘over,’ Trump at DAS, and additional news: Hodler’s Digest, March 16 – 22
