Donald Trump recently selected Paul Atkins as the next Chairman of the U.S. Securities and Exchange Commission (SEC), fulfilling his pre-election promise to fire incumbent Gary Gensler on his first day in office.

But Trump won’t have to fire Gensler. The 67-year-old, who has spoken out against cryptocurrencies since taking office as SEC chairman in 2021, said he will step down on January 20, when Joe Biden leaves office.

Atkins, a veteran lawyer and businessman with previous experience at the SEC, has a lot riding on him. He is stepping into the shoes of a man who has become one of the crypto industry’s biggest enemies.

Many expect him to "clean up the mess" left by Gensler, who has been accused of trying to collapse the industry through "regulation by enforcement."

Hester Peirce, a current SEC commissioner also known as “Crypto Mom” for her pro-crypto stance, said Atkins is the best person for the job.

“We have a lot of work to do at the SEC to promote free markets, capital formation, investor choice, and innovation,” she wrote on X. “I am thrilled that Paul Atkins will be returning to lead this effort.”

How Gensler Became Crypto's 'Public Enemy Number One'

To be clear, Gensler is a product of the uncertainty of US crypto law. With vague laws, the SEC has the authority to decide which tokens are investment contracts. And it has pursued tokens and NFTs with real-world use cases beyond speculation.

Under Gensler, the regulator has taken a record number of enforcement actions against cryptocurrency companies. In 2023, the Commission took 53% more actions against the industry than the previous year.

Furthermore, according to crypto investment firm Paradigm, during his three years in office, Gensler was responsible for 50% of the enforcement actions the SEC has taken against the crypto sector since 2015.

The $238 million the crypto lobby spent on pro-industry candidates in the November election pales in comparison to the $429 million the 100-member Blockchain Association lost fighting the SEC.

The lesson here is that regulating cryptocurrencies under current law is as much a matter of philosophy as it is of law.

By nominating Atkins, who is seen as a Bitcoin supporter, Trump is clearly paying off the crypto community’s support. The president-elect is confident that he has picked the right person for the job.

“Paul is a proven leader for common sense regulation,” Trump said when announcing his nomination earlier this December. “He believes in the promise of strong, innovative capital markets that meet the needs of investors…”

'Definite choice'

Atkins was a George Bush-era SEC commissioner and has a progressive background that Trump could use at the regulator. Since stepping down at the end of Bush’s term, Atkins has been an eloquent opponent of Dodd-Frank, a package of rules put in place after the 2008 financial crisis that made sweeping changes to the U.S. financial regulatory system.

Atkin’s tenure at the SEC also marks him as an ideal candidate for the Trump era, according to previous reports. The former commissioner opposed large fines for companies that violate securities laws. He has recently become involved in cryptocurrency advocacy through his lobbying group, Token Alliance.

Mason Jappa, CEO of US-based Bitcoin mining company Blockware, described Trump's nomination of Atkins as “a solid pick.”

“What crypto needs from regulators to thrive in the US is transparency and consistency – Atkins is known for both of these,” Jappa told Cryptonews, adding:

“At least crypto will do well in a neutral regulatory environment and Atkins, as a Libertarian, can bring that into play even if he doesn’t become a radical crypto advocate.”


Jappa said he hopes Atkins will create “a clear set of rules so that large capital allocators start taking this industry more seriously.”

He noted that the SEC’s approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) is “a big step in that direction.”

Clarity of regulations

Some critics appear to be concerned about deregulation under Atkins. However, George Georgiades, general counsel at stablecoin payments network Borderless.xyz, said the crypto industry has consistently called for regulatory clarity, not deregulation. He said they want an orderly rulemaking process.

Speaking to Cryptonews, Georgiades said Atkins is joining the SEC at a “critical time [for] our industry.” He hopes the 66-year-old will make changes that will help the United States become a leader in cryptocurrency adoption.

When asked about changes Atkins could make to facilitate the crypto industry, Georgiades said:

“It starts with a return to our traditional rulemaking process and meaningful engagement between the SEC and market participants. [This] is to ensure regulatory clarity on how digital assets are characterized, define the scope of the SEC’s authority relative to other U.S. regulators, and balance consumer protection with the need to embrace innovation.”

Georgiades, a technology lawyer with experience in regulatory compliance, said there are “complex legal issues” related to the characteristics of some crypto assets that need to be reformed, including the design of staking products, the structure of stablecoins and tokenized real-world assets (RWAs).

Such issues require clarification “about whether oversight falls within the SEC’s jurisdiction, and if so, how these products would be included in our registration or exemption process,” he said.

Georgiades said:

“The SEC’s mission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. Regulation by enforcement and ambiguity will not achieve those goals.”

Courage Kimber, an American cryptocurrency analyst and digital nomad, believes Atkins is Donald Trump's "least controversial" pick because of his previous experience as an SEC commissioner.

“Given that he [Atkins] works as a lobbyist for crypto companies and has ties to the Chamber of Digital Commerce, it is very likely that he will develop a clear regulatory framework for the industry to follow,” Kimber told Cryptonews via LinkedIn.

Can Paul Atkins deregulate?

For Slava Demchuk, CEO of compliance and blockchain auditing firm AMLBot, Atkins “could be a proponent of deregulation, potentially easing the compliance burden on crypto companies.”

Demchuk highlighted the many regulatory agencies and organizations that currently oversee the cryptocurrency industry, including the SEC, the Commodity Futures Trading Commission (CFTC), FinCEN, and the IRS.

“Without a unified regulatory framework or a clear understanding of each agency’s scope of authority, it will be difficult for companies to meet compliance requirements and operate effectively,” he said.

Demchuk told Cryptonews that he expects Atkins “to expand support for crypto services in national banks, simplifying integration with traditional financial infrastructure.” He added:

“The administration could support the use of regulatory sandboxes, allowing banks to safely experiment with blockchain and digital asset initiatives without being constrained by heavy regulatory burdens. He would likely favor minimal government intervention…”

Sid Powell, CEO and co-founder of crypto lending platform Maple, said Trump's choice of Atkins "shows that the new administration is not only looking for crypto advocates but also people who have taken the time to develop relationships within the industry."

“US innovators and startups in the crypto/blockchain space will be happier under the Atikins regime,” Powell told Cryptonews. “There will be greater incentives for innovative laws and for regulators and key crypto players to work together rather than face regulatory disparity.”

But all of the expected reforms are contingent on Atkins taking the job. The former commissioner is reluctant to leave his consulting firm, Patomak Global Partners, because of the amount of work needed to turn the SEC around, Coindesk reported, citing sources familiar with the matter. Atkins believes Gensler has “mismanaged” the agency, the sources said.

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