SEC candidate chairman Paul Atkins attends hearing, may lead new direction in regulation

On March 27, Paul Atkins attended a Senate Banking Committee hearing as a candidate for the chairman of the U.S. Securities and Exchange Commission (SEC). This hearing has attracted significant attention as it may bring new regulatory ideas and development opportunities for the cryptocurrency industry.

Turning to Deregulation, Reshaping the Core Mission of the SEC

Atkins criticized several policies of former SEC Chairman Gary Gensler during the hearing, including rule-making that was overturned by federal courts, rising employee turnover rates, and controversial enforcement actions against cryptocurrency companies. He stated that if appointed, he would lead the SEC towards a deregulatory path, focusing on establishing a clear and effective rule system that promotes innovation while protecting market integrity. Atkins emphasized the need to refocus on the SEC's core mission: protecting investors, maintaining market efficiency, and promoting capital formation.

Responding to Doubts, Committing to Uphold Ethical Standards

At the hearing, Atkins faced pointed questioning from senators, particularly regarding his connections to the cryptocurrency industry and financial institutions. One senator pointed out that Atkins had provided consulting services for a now-bankrupt exchange and held a significant amount of cryptocurrency-related assets, questioning his ability to maintain a neutral stance.

In response to questions, Atkins pledged that if appointed, he would divest all financial assets that could create a conflict of interest, including crypto assets. He emphasized that all future decisions would be based solely on the public interest and the statutory duties of the SEC. Regarding the incident involving a certain bankrupt exchange, Atkins committed to a thorough investigation.

Proposing a New Regulatory Framework Concept

Atkins has made it a priority to establish a digital asset regulatory framework that is "principle-based, structurally sound, and technology-neutral." He believes that the ambiguity of current rules has become an obstacle to innovation. Atkins advocates for reasonable regulation to reinforce the United States' global leadership in financial innovation while opposing "overly politicized" rule-making and calling on the SEC to focus on its statutory responsibilities rather than partisan agendas.

It is worth noting that Atkins has pledged that the SEC will operate in a more transparent manner and actively listen to the opinions of the industry and consumers, which is a stark contrast to past practices.

Candidate Background Draws Attention

If the nomination is confirmed, Atkins will become the richest SEC chairman in decades. According to disclosure documents submitted to the Office of Government Ethics, his and his wife's net worth is at least $327 million. Atkins stated that once appointed, he will resign from his position as CEO of his current consulting firm within 90 days.

As the SEC faces important choices regarding its regulatory path, Atkins' nomination results will profoundly impact the agency's policy direction in key areas such as the cryptocurrency market, enforcement priorities, and market structure reform. The Senate Banking Committee will continue to review his nomination qualifications, and if approved, the nomination will be submitted to the full Senate for a final vote, where a simple majority will be sufficient for appointment.