The nomination of Paul Atkins to become the next chairman of the U.S. Securities and Exchange Commission (SEC) has sparked strong reactions from both supporters and critics.
Among those expressing support is Paul Grewal, Chief Legal Officer of Coinbase, who recently attended a Senate Banking Committee hearing on Atkins’ confirmation. Coinbase CLO Paul Grewal has highlighted the importance of Atkins’ leadership in bringing clarity to the regulatory landscape for digital assets.
Coinbase CLO Applauds US SEC Chair Nominee Paul Atkins
At the Senate Banking Committee hearing, Paul Atkins highlighted that there should be clear rules and approaches to the digital assets which is in line with the Coinbase’s CLO. Grewal shared his appreciation of Atkins by tweeting and arguing that policy certainty is vital for the improvement and progression of the new economy in the United States. According to the Coinbase’s Chief Legal Officer Paul Grewal, greater clarity on regulation of cryptocurrencies would create new markets and a shield consumers and place the nation at the front row of technology ad finance.
Under his regime, Atkins revealed that digital assets would be prioritized since the current legal frameworks are a hindrance to development. “Unclear, overly politicized, complicated and burdensome regulations are stifling capital formation,” Atkins said during the hearing.
3️⃣ Mr. Atkins and Comptroller of the Currency nominee Jonathan Gould addressed debanking and committed to end this undemocratic practice for good.
As Mr. Atkins put it, it’s time for the SEC to get “back to basics.” He’ll be a breath of fresh air atop a crucial oversight and…— paulgrewal.eth (@iampaulgrewal) March 27, 2025
In addition to his focus on crypto, Mr. Atkins, alongside Comptroller of the Currency nominee Jonathan Gould, also addressed the issue of debanking during the hearing. The two nominees committed to ending this practice, which they both described as undemocratic. “It’s time for the SEC to get back to basics,” Coinbase’s CLO said.
This is in tandem with Coinbase urging regulators to be more clear on their regulations especially after having had a taste of the regulatory endeavours in the recent past.
“Getting workable rules and regulatory clarity for crypto will unlock US-based innovation,” Coinbase CLO Paul Grewal commented.
Senator Elizabeth Warren Calls Out Paul Atkins’ Nomination
Although Grewal endorsement Atkins has had support from some industry professionals, his appointment has drawn opposition most especially from the Democrats party. In questions addressed to Atkins, Senator Elizabeth Warren cited his interactions with Wall Street and digital asset firms, saying that being in the firm could lead to conflicts of interest due to his previous stints with the executives to fund their firms.
During the hearing Senator Warren said: “Mr. Atkins has almost dedicated his entire career to assisting such billionaires as Sam Bankman-Fried,” referring to his financial experience and contacts.
Warren’s concerns also extend to the broader financial crisis of 2008. She accused Atkins of downplaying the risks leading up to the crash. Atkins, in response, defended his past record, attributing the crisis to the subprime mortgage market, specifically the role of Fannie Mae and Freddie Mac. Nonetheless, these criticisms are unlikely to prevent his confirmation by the GOP-controlled Senate.
Atkins’ Financial Holdings and Divestment Plans
Atkins’ financial background has raised questions about potential conflicts of interest. His stake in Patomak Global Partners, a consulting firm he founded, has come under scrutiny.
According to government filings, Atkins’ stake in the firm is worth at least $25 million, while his total net worth is estimated at over $327 million.
In light of these concerns, Atkins has committed to divesting from Patomak and other holdings within 90 days of his confirmation. He also pledged to meet or exceed the same ethical standards applied to previous SEC nominees. However, Senator Warren has pressed Atkins to provide more details about who will purchase his stake and whether they will gain any undue access to his potential position as SEC chair.
US Crypto Regulatory Changes Looming
If confirmed, Atkins is expected to push for a reduction in financial regulations, a shift away from some policies introduced under the Biden administration. For instance, the SEC under Gary Gensler’s leadership focused on aggressive regulation of cryptocurrency firms, often accusing them of failing to register as exchanges.
Atkins, by contrast, has expressed a desire for a regulatory framework that fosters capital formation rather than imposing burdensome rules.
Critics of Gensler’s approach see Atkins as a favorable alternative. “It’ll be more of an emphasis on capital formation and investment choice,” said Nick Morgan, a former SEC attorney. This shift could provide a clearer path for companies in the digital asset sector, allowing them to operate with fewer regulatory hurdles.
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