SEC Chair Nominee Atkins Says Crypto Regulation 'Top Priority' — Barrons.com

By Kenneth CorbinPaul Atkins, President Donald Trump's nominee to chair the Securities and Exchange Commission, says his "top priority" in that role would be establishing a new framework for cryptocurrency regulation."I've seen how ambiguous and nonexistent regulation of digital assets create uncertainty in the market and inhibit innovation," Atkins said Thursday in his opening statement at his confirmation hearing before a Senate committee."The top priority of my chairmanship will be to work with my fellow commissioners and Congress to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach," he said.This is breaking news. Read a preview of Atkins' confirmation hearing below and check back for more updates soon.Paul Atkins, President Donald Trump's nominee to chair the Securities and Exchange Commission, will face tough questions on Thursday at his confirmation hearing before a Senate committee. He is expected to be asked about cryptocurrencies, the agency's approach to regulation and enforcement, and his own potential conflicts of interest.Unlike some of Trump's other nominees to high-profile positions within the administration, Atkins is no stranger to the agency he would lead. He served as a commissioner at the SEC from 2002 through 2008. He also previously worked as a staffer under two chairmen of the agency.Based on his time at the commission, Atkins is seen as a nominee who wouldn't likely embark on significant, controversial efforts to write bold new regulations, but would instead focus on more bread-and-butter investor protections and efforts to fight fraud.There are questions about the SEC's resources to put behind those aims, as well as its resolve to do so, given reports that hundreds of staffers could be on the way out the door and the commission's decision to back away from numerous crypto cases initiated during the previous administration."I suspect that the Democrats will focus many questions on the SEC's role in consumer and investor protection," says Chris Nevkinda of the Cannon Financial Institute. "Since the transition in January, the SEC has dropped a series of enforcement actions that it was pursuing against various digital asset businesses, namely Coinbase and Ripple Labs."Those actions came under the interim leadership of Mark Uyeda, a Republican who would resume his role as a commissioner if Atkins is confirmed.Crypto questions. Atkins is expected to continue the new administration's pivot to a friendlier policy toward the crypto industry. Some of Atkins' work since leaving the government has included advocacy on behalf of the digital-asset sector seeking clearer — and presumably more accommodative — regulation."Digital assets will be a major focus, given Atkins' past involvement in the space and the administration's strong push for deregulation," says Igor Rozenblit, managing partner of the consultancy Iron Road Partners.Crypto will likely be front and center given the contrast between the current administration and the Biden regime's approach to the industry, but Senate Democrats will likely ask about Atkins' views on SEC oversight of a broad range of players in the financial services sector."Democrats are likely to press Atkins to commit to maintaining robust enforcement and examination efforts," Rozenblit says, including private investments and complex financial products.Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, which will consider Atkins' nomination, has sent the chairman-designate a lengthy letter raising concerns about potential conflicts of interest and his record as a regulator in the run-up to the 2008 financial crisis."Your financial ties to the industries you will soon regulate raise serious concerns about your ability to avoid conflicts of interest as a regulator," Warren wrote, citing Atkins' work consulting for the collapsed crypto platform FTX as well as for big banks, investment advisors, brokers, and other financial services firms.In a separate letter, Warren asked Atkins to commit to recusing himself "from all particular matters involving your former clients and employers for a period of four years."Trump order. Warren, who is seeking written responses to her 34-page letter, noted the February White House executive order directing independent agencies such as the SEC to consult with the Office of Management and Budget before moving ahead with any rule-making initiatives. She asked Atkins if he would indeed seek OMB approval for "significant SEC rule-makings" and if he believed that the president has the authority to "direct individual SEC enforcement actions, including for political or personal reasons.""If the president directs you to open or close an investigation," Warren asked, "will you comply?"This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.