What to know:
- President-elect Donald Trump has interviewed former SEC Commissioner Paul Atkins to lead the U.S. Securities and Exchange Commission.
- Atkins is hesitant to leave his global consulting firm to clean up what he sees as a bloated agency mismanaged by departing SEC chair Gary Gensler, a person familiar with Atkins’ thinking said.
- Other candidates under consideration include crypto attorney Teresa Goody Guillèn, former acting Comptroller of the Currency Brian Brooks and former SEC general counsel Robert Stebbins.
As a seasoned crypto investor with over two decades of experience in traditional finance and a keen eye for regulatory shifts, I find myself watching the potential appointments to lead the U.S. Securities and Exchange Commission (SEC) with bated breath. Among the contenders, Paul Atkins, former SEC commissioner and now head of Patomak Global Partners, appears to be President-elect Donald Trump’s top pick.
It seems quite a few conditions must be met for Paul Atkins, who is rumored as the preferred choice to lead the U.S. Securities and Exchange Commission under President-elect Donald Trump, to actually assume that position.
The demanding nature of the position doesn’t appeal to him due to the significant effort required to reform the overextended agency, which he perceives as having been poorly managed during Gary Gensler’s tenure as SEC chair, according to someone privy to Atkins’ thoughts.
Chris Giancarlo, a former head of the Commodity Futures Trading Commission, has expressed reservations about cleaning up Gensler’s “mess,” and he has suggested that Atkins should be appointed to the SEC position instead. Interestingly enough, Giancarlo was once thought to be a possible candidate himself.
This week, it was reported that a previous SEC commissioner, Atkins, was seen at Donald Trump’s Mar-a-Lago estate. According to an insider from the industry, he had interviews scheduled for the position of SEC chair on Sunday and Monday, as confirmed by another individual who is familiar with those meetings.
Mark Atkins is the head honcho and founder of Patomak Global Partners, a multinational consulting company with a broad range of expertise in strategy, risk management, and regulatory compliance. This firm caters to various sectors, such as traditional financial institutions, public companies, trade associations, law firms, banks, insurance companies, and even crypto-based businesses – though the latter constitute only a fraction of its diverse clientele.
In more traditional communities, Atkins enjoys high esteem. It’s been reported that Atkins has a cordial relationship with Scott Bessent, the founder of Key Square Group and the wealthy hedge fund manager who was chosen by Trump for the role of Treasury Secretary.
According to a source privy to his thoughts, Atkins shows signs of hesitation about departing from his professional practice. Accepting the position as SEC chair would necessitate him letting go of his business ventures, a step he might take only when his company is sufficiently self-sustaining in his absence, according to reliable sources.
Other candidates
As a crypto investor, I’ve heard whispers that crypto attorney Teresa Goody Guillén is being considered by the Trump transition team. Known figures like Binance co-founder Changpang Zhao, Cardano creator Charles Hoskinson, and other crypto executives are backing her due to her pro-crypto stance and past experience arguing for blockchain clients against the SEC. Guillén herself has stated on X that she aims to “Make Crypto Great Again” and is actively gathering public opinion on the best ways for the agency to tackle regulatory hurdles.
A week ago, it was thought that Brian Brooks, a crypto executive who previously held the position of Acting Comptroller of the Currency, could potentially lead the Securities and Exchange Commission (SEC). He garnered significant backing from supporters of Web3, even topping the predictions on Kalshi at one point. However, his lack of experience in securities law made him more of an underdog, according to insiders.
Circle Chief Legal Officer and Head of Corporate Affairs Heath Tarbert is reportedly being considered. He is a former CFTC chair, assistant Treasury secretary, and associate White House counsel. “We won’t comment on speculation,” said a Circle spokesperson.
Brad Bondi has been proposed as a potential nominee, yet he’s known as “pro-crypto.” However, some critics claim that he lacks substantial experience in Web3 and primarily functions as a traditional securities lawyer with ties to the SEC and a history of opposing the agency in court. Nevertheless, his key advantage could stem from his close connections to the Trump administration. His sister Pam Bondi was nominated for U.S. attorney general and is a staunch supporter of former President Trump, who she represented during his 2020 impeachment trial.
As an analyst, I find it intriguing that Norm Champ, a former SEC investment management director and current partner at Kirkland and Ellis, is expressing his readiness to take on the role of SEC Chair if President Trump considers him suitable for the position, as he stated to CoinDesk. However, his conventional securities background has not sparked much enthusiasm within the crypto community.
It’s been reported that Jay Clayton, Trump’s choice for Manhattan’s U.S. attorney and former head of the Securities and Exchange Commission (SEC) from 2017 to 2020, has given his full support to Robert Stebbins and Dalia Blass. However, these individuals have faced criticism from cryptocurrency experts.
According to John Reed Stark, a former SEC lawyer and advocate for Ripple Labs, he stated that Stebbins personally endorsed, sanctioned, and backed approximately 80 SEC actions related to crypto, including the highly debated case against Ripple. The SEC lost some ground in this case when the judge decided XRP sales by Ripple Labs on public exchanges did not meet the criteria of a security; however, the SEC has expressed their intention to challenge this ruling.
Stark stated that due to its immense influence, the major cryptocurrency sector could significantly impact the choice of the SEC Chair. It’s hard for me to envision a scenario where Bob Stebbins would be chosen as the SEC Chair nominee with such powerful crypto entities in play.
If Gary Gensler’s nomination as SEC chair isn’t confirmed by the Senate by January 20th, Republican commissioner Hiro M. Uyeda could temporarily take over the position of SEC chairman on inauguration day. Commissioner Elad L. Roisman, another strong contender, has made it clear that he doesn’t wish to hold the role on either a temporary or permanent basis, potentially increasing Uyeda’s chances for the role. However, it remains uncertain if Uyeda would choose to continue in this position if given the opportunity.
According to crypto lawyer Jake Chervinsky, expressed on X, it’s likely that Trump might choose to appoint a new person who is aligned with him instead.
Prior to the election, it was reported that Dan Gallagher, the chief legal officer at Robinhood, was considered a strong candidate for the top position at the Securities and Exchange Commission (SEC). However, more recently, Gallagher himself stated that he is not pursuing this opportunity.
Gallagher stated that he does not want to be considered for the position via email to CoinDesk. He believes he can achieve significant advancements towards financial democracy in his existing role, and will continue to actively support and push for positive changes within our marketplaces.
In this report, Atkins, Guillén, and Uyeda chose not to provide their thoughts or insights. The Trump transition team’s representative, Karoline Leavitt, along with Brooks, Brad Bondi, Stebbins, and Blass, did not offer comments when approached for this article.
Experts from Washington predict that the Trump administration may shift responsibility for overseeing the $3 trillion digital assets market away from the SEC, towards the CFTC instead. The reason being, the CFTC is generally seen as having a more lenient approach due to the type of market it governs – derivatives – which caters mostly to professional, institutional traders who can tolerate higher risk, rather than everyday retail investors.
The Securities and Exchange Commission (SEC) has been involved in a broad crackdown on digital asset firms, an action that has drawn accusations of unfairness. With one commissioner set to leave, Jamie Lizárraga, the SEC will need to appoint another member to its five-person panel. The crypto community is closely watching the process of selecting a new chair for the SEC, which is expected to be finalized soon.
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2024-12-03 20:55