Paul Atkins Paul Atkins
Paul Atkins talks about regulations at CoinMarketCap's The Capital conference in Singapore, November 2019. The Capital '19: Fireside Chat with Paul Atkins, Former Commissioner, U.S. SEC | YouTube CoinMarketCap YouTube / Screenshot

KEY POINTS

  • Trump specifically praised Atkins for his tested leadership in 'common sense regulations'
  • Atkins is known for avoiding enforcement-first strategies in finance regulation
  • Some crypto leaders believe he will usher in a more 'balanced' regulatory process
  • Ripple's Brad Garlinghouse said Atkins is an 'outstanding choice' for the role

U.S. President-elect Donald Trump has officially nominated former Securities and Exchange Commission (SEC) Commissioner Paul Atkins to replace outgoing Chair Gary Gensler, marking a new era in the digital assets space.

Trump had nothing but good words for the former Commissioner, whom the Trump transition team interviewed last week as a top candidate for the position. The incoming President called Atkins "a proven leader for common sense regulations," and someone who recognizes the role cryptocurrencies and digital assets will play toward "Making America greater than ever before."

Atkins's Crypto and Regulatory Views

During his tenure as a Commissioner from 2002 through 2008, he was known for going against heavy-handed enforcement strategies in regulation.

In 2018, he said that there is true utility in blockchain-based payment networks such as that of Bitcoin. He said that the anonymity concerns over crypto markets were "misplaced," but he did acknowledge at the time that concerns around excessive speculation in crypto markets were understandable.

Crypto Community Gives Potential New Chair a Thumbs Up

The nomination of Atkins comes at a critical time in the industry. Crypto firms have been in legal combat with the SEC since Gensler took over the regulatory agency in 2021 over his insistence that crypto coins are securities that lack regulation.

For crypto, Atkins's arrival is an opportunity to build trust with American regulators after some four years of disconnect.

Brad Garlinghouse, the CEO of Ripple, which was one of the major crypto-associated firms that suffered the brunt of the Gensler SEC's concern, believes Atkins is "an outstanding choice."

He expects that Atkins will work alongside Republican Commissioners Hester Peirce and Mark Uyeda to "swiftly and definitively end the prohibition era on crypto."

Reserve Protocol co-creator Nevin Freeman said he believes Atkins is an "open-minded person" who was "willing to jump in and work with crypto projects like us."

House Majority Whip Rep. Tom Emmer, a known crypto advocate, praised the ex-Commissioner's understanding that an enforcement-first approach toward regulating digital assets "is a losing strategy that has crippled American innovation."

Coinbase's Chief Legal Officer, Paul Grewal, who has called out Gensler and the SEC for its "regulatory overreach" multiple times over the years, congratulated Atkins for clinching the nomination. "We appreciate his commitment to balance in regulating U.S. securities markets," he said.

Many other crypto holders and prominent names in the industry showed an outpouring of support for Trump's new SEC chief pick, including ARK Invest's Cathie Wood.

There were also some who said they will observe how Atkins behaves after taking on the role. After all, there was also optimism around Gensler when he was appointed to the position due to his previous blockchain and Bitcoin teachings.

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