Industry Optimism Around Paul Atkins
Cryptocurrency industry leaders have expressed support for former SEC commissioner Paul Atkins, who has been tapped by President-elect Donald Trump as the next chair of the Securities and Exchange Commission (SEC). Atkins is expected to succeed Gary Gensler, who is set to resign on January 20.
Katherine Dowling, general counsel at Bitwise Asset Management, praised Atkins in a December 5 interview with Bloomberg, calling him a “great choice.” She suggested Atkins could take a less confrontational approach toward Congress and industry stakeholders compared to his predecessor.
“We’re optimistic that Atkins will engage with other commissioners, the Commodity Futures Trading Commission (CFTC), and lawmakers to finally bring clarity to critical issues like stablecoin legislation and market structure,” Dowling said.
A Regulator Familiar with the Industry
Atkins served as an SEC commissioner under President George W. Bush from 2002 to 2008, well before the rise of cryptocurrencies. If confirmed by the Senate, where Republicans will hold a slim majority in 2025, Atkins will face the challenge of navigating the complex regulatory landscape for digital assets.
Atkins has previously signaled a willingness to adopt a more flexible approach to crypto regulation. In a February 2023 interview, he argued that the SEC should be “more accommodating” to cryptocurrency firms to support the industry’s growth in the United States.
Ripple and Coinbase Voice Support
Executives from Ripple Labs and Coinbase—two companies embroiled in legal battles with the SEC—also welcomed the prospect of Atkins leading the agency.
Ripple CEO Brad Garlinghouse described Atkins as a leader who could “bring common sense back to the agency,” referencing frustrations over Gary Gensler’s enforcement-focused regulatory strategy.
Ripple has been a high-profile target of the SEC. The agency sued Ripple in December 2020, alleging that its XRP token was sold as an unregistered security. Although Ripple was found liable for $125 million in August, the case remains unresolved as the SEC appeals the decision.
Coinbase’s chief legal officer, Paul Grewal, echoed Garlinghouse’s optimism, stating that Atkins’ appointment is “sorely needed.” Coinbase is also battling an SEC lawsuit filed in June 2023, which accuses the exchange of offering unregistered securities.
Industry Awaits a New Direction
As CEO of Patomak Global Partners and a board member of the blockchain advocacy group Digital Chamber, Atkins has worked with key crypto stakeholders. His nomination has sparked hope that the SEC may adopt a more constructive regulatory framework under his leadership.
However, questions remain about how Atkins will handle high-profile cases like Ripple’s and Coinbase’s, as well as broader issues such as stablecoin legislation and market structure reforms.
