Trump's pick for SEC Chair probed concerning involvement with FTX, digital asset regulations

In a Thursday Senate Banking Committee nomination hearing, lawmakers interrogated Trump's pick for Securities & Exchange Commission (SEC) Chair Paul Atkins on several key matters relating to the agency. Atkins said he would establish a firm regulatory framework for digital assets.

Paul Atkins pressed by Committee members on matters relating to crypto

Senate Banking Committee members probed incoming SEC Chair Paul Atkins during a nomination hearing on Thursday. When asked about his plans for the agency, Atkins stated his intentions to pull back on stricter regulatory approaches the SEC implemented during former Chair Gary Gensler's administration.

Several senators addressed the enforcement approach from the previous administration, including the Committee Chairman Tim Scott. 

"One thing I can say about the SEC is that under your predecessor, there was no golden age," Chairman Scott said to Paul Atkins, citing scenarios from the previous administration.

Concerning digital assets, Atkins highlighted that he would place crypto regulations as a top priority in his administration.

"A 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," said Atkins.

Democratic senator Elizabeth Warren questioned Atkins over his previous involvements with collapsed crypto exchange FTX, asking whether connections to the company might influence his approach to crypto regulation.

"If you're confirmed, you will be in a prime spot to deliver for all those clients who have been paying you millions of dollars," Warren stated during the hearing.

FTX was a client of Atkins' Patomak Global Partners until its collapse in November 2022.

Atkins stated his intention to step down as CEO of Patomak to remove conflicts of interest if he is confirmed as the new SEC Chair. However, he did not disclose potential buyers for his consulting firm when questioned by Senator Warren.