President-elect Donald Trump’s nominee for the Securities and Exchange Commission, Paul Atkins, is under ethical scrutiny following revelations of $3 million in consulting fees received by his firm, Patomak Global Partners. These payments came from entities that Atkins may soon oversee.
What Happened: Atkins, who established Patomak Global in 2009, has garnered support from trade groups within the crypto and investment sectors.
Some of these groups, which were clients of Patomak, have collectively paid the firm over $3 million over the past decade, reported Barron’s, citing an analysis of public records.
Patomak’s clientele includes banks, fintech firms, and cryptocurrency exchanges. Notably, the Investment Company Institute (ICI) compensated Patomak with over $1.5 million between 2014 and 2021.
The ICI has endorsed Atkins, citing his comprehension of the role of registered fund companies in the U.S. economy.
Atkins’ potential role as SEC Chair could significantly influence ongoing and future enforcement actions against cryptocurrency firms.
His nomination is subject to Senate confirmation, where his previous work and compensation will likely be examined.
Why It Matters: Known for his pragmatic approach to regulation and a wealth of experience, Atkins is viewed as a potential disruptor in the financial services landscape, especially within the crypto industry.
His previous tenure as an SEC commissioner from 2002 to 2008, under President George W. Bush, along with his later work at Patomak, has solidified his reputation within conservative financial circles.
However, the Atkins is said to be uncertain about taking on the SEC role.
According to a source familiar with the situation, Atkins’ hesitation is linked to the considerable work needed to overhaul what he perceives as a cumbersome and poorly managed agency during Gary Gensler’s leadership.
During Gensler’s leadership, the agency was criticized for its aggressive enforcement stance on cryptocurrency regulation, contributing to instability in a fast-changing market.
Previously, former CFTC Chairman Chris Giancarlo, known as “Crypto Dad,” advocated for transferring crypto regulation from the SEC to the Commodity Futures Trading Commission.
Giancarlo argues that the CFTC’s lighter regulatory approach could foster innovation while maintaining market integrity.
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