Paul Atkins, pro-crypto SEC nominee, supported by President Trump, was officially sworn in as the Securities and Exchange Commission (SEC) chair. The ceremony occurred at the White House in the Oval Office. Atkins was sworn into office by Treasury Secretary Scott Bessent. Atkins said that he would strive to provide a firm foundation for crypto investment that was fair.
“At the helm of the SEC”, said Atkins, “I can confidently say it is a new day. It’s time for the SEC to end its waywardness and return to its core mission that Congress set for it, investor protection, fair, orderly, and efficient markets, and capital formation”.
Atkins, the new SEC chair, said that the crypto sector needed clear rules so that innovators could engage with the market without worrying about uncertainty and reprisals. Uncertainty has been a focal point for many crypto businesses, with many CEOs claiming that they were okay with regulation as long as uncertainty was removed. Atkins went on to say that he wanted a clear and rational approach to crypto markets that was agreed upon by Congress.
Atkins has a long history of trading cryptocurrencies. His financial disclosures revealed $6 million in crypto assets. He also invests in Anchorage Digital, which is a crypto-related business and platform. Atkins, unlike his predecessor Gensler, has a good knowledge of crypto investments and understands concepts such as blockchain and custodial wallets. Gensler, in contrast, created ongoing conflicts with major crypto exchanges like Coinbase and innovative DeFi platforms like Uniswap.
The SEC has reversed most of its enforcement activities against crypto. This is a result of the new administration refusing to continue the war against crypto. The SEC, under Gensler, had a crypto enforcement unit, which was the largest of its type, and has since been cut down to a smaller size, due to a change in administration. The unit has been renamed the Cyber and Emerging Technologies Unit, and focuses on protecting retail investors from scams. This is a big change for the SEC, which used to focus on regulatory requirements such as Know Your Customer (KYC).
Mark Uyeda, Acting Chair during the interim period between Gensler and Atkins, enacted a lot of changes that were fundamental for the crypto industry, including roundtables, settlements, and the creation of a Crypto Task Force. Uyeda was instrumental in calming down the various wars that Gensler inflicted on the business world. He instilled a lot of confidence in the crypto community that the war on crypto was finally coming to an end. After all, if an interim SEC chair could make such an impact, one can only imagine what the newly appointed chair, Atkins, will accomplish. Uyeda further straightened out the memecoin issue, defining them as nonsecurities, describing them as having similar properties to trading cards.
Atkins served on the SEC between 2002 and 2008, under George W. Bush, and was known for advocating against excessive regulation, preferring instead market efficiency and light regulation. With the return of Atkins to the SEC, many investors expect him to cut back on draconian regulations and to encourage innovation with fewer compliance requirements. Traders further expect more collaboration between the SEC and Wall Street because Atkins is highly educated on securities law.
Uyeda, meanwhile, as acting SEC chair, is still working under the SEC, with another roundtable on April 25. Uyeda stated that he is looking forward to moving back to his old job as an SEC commissioner. His comment suggests that Atkins may assume full responsibility as soon as the ceremony has finished. Atkins previously worked for the SEC and should therefore have no trouble fitting into the organisation.
SEC Enforcement 2.0 has already begun under Uyeda. Time will tell if Atkins will continue many of these policies. It is assumed that Atkins will work with Uyeda’s changes because he has a similar agenda to Uyeda and has nothing stopping him from collaborating with the acting chair.
“I will strive to protect investors from fraud”, said Atkins at his confirmation hearing, “to keep politics out of how our securities laws and regulations are applied, and to advance clear rules of the road that encourage investment in our economy to the benefit of all Americans”.
