Kirkland and Ellis Partner Norm Champ discusses the future of the SEC chair and the Trump transition team on ‘The Claman Countdown.’
President-elect Donald Trump nominated Paul Atkins to replace Gary Gensler as the next chairman of the Securities and Exchange Commission.
Atkins is a well-known securities lawyer, former SEC commissioner during the administration of former President George W. Bush, and founder of financial consulting firm Patomak Global Partners. He also served as a policy adviser to Trump during his first presidency and that role, according to a senior member of the transition team, has continued after Trump’s election on Nov. 5, paving the way for Atkins’ appointment as SEC chair.
Trump made the announcement via his Truth Social account on Wednesday, calling Atkins a “proven leader for common sense regulations.”
FOX Business previously reported the 66-year-old Atkins was the transition team’s top choice to succeed Gensler, who announced he would step down Jan. 20. Sources tell Fox Business he accepted the job Monday at Mar-a-Lago, Trump’s Florida residence and country club that has served as his transition team headquarters. Attending the meeting was Trump, Vice President-elect JD Vance, and economic adviser Vivek Ramaswamy.
Trump touted Atkins embrace of crypto in announcing the moves, a further indication that the Trump SEC will back-off its crackdown on digital assets and prioritize blockchain innovation as part of its regulatory agenda.
“He believes in the promise of robust, innovative capital markets that are responsive to the needs of investors, and that provide capital to make our economy the best in the world. He also recognizes that digital assets and other innovations are crucial to making America greater than ever before.”
Atkins did not immediately respond to a request for comment.
If the Senate confirms Atkins as expected, it will mark the start of a new era at the SEC, one that is slated to deviate significantly from Gensler’s reign, which many say was characterized by an aggressive, overly politicized rulemaking agenda, departing from the commission’s congressional mandate to provide fair and orderly markets and ensure investor protection.
Among Gensler’s most controversial edicts was forcing public companies to adopt certain Environmental Social Governance (ESG) guidelines, including disclosing their carbon footprints. The Gensler years were also known for their stringent enforcement policies – particularly against the $3 trillion cryptocurrency industry, against which the commission brought over 100 enforcement actions.
SEC watchers expect the Gensler agenda to be reversed under Atkins, including the climate disclosure rule that is now being reviewed in federal court. The ruling was heralded by progressive advocacy groups and politicians like Massachusetts Sen. Elizabeth Warren, but faced widespread criticism from business groups for being costly, difficult to implement and potentially illegal, since securities laws were not designed to force companies to enact social policy, but to protect shareholders.
“Paul knows the agency; he knows the markets, and he knows what needs to be done. I expect him to hit the ground running,” said Jay Clayton, who served as Trump’s SEC chair during his first term and has been nominated by the president-elect to be the U.S. Attorney for the Southern District of New York, the premier law enforcement agency in the Department of Justice.
Clayton, now a senior policy advisor at white-shoe law firm Sullivan & Cromwell said that he expects Atkins to reform the proxy-voting process that mandates disclosures of advisers’ potential conflicts of interest when they recommend how investors should vote on various issues. He will also reverse Gensler’s climate agenda which was “transferring power from shareholders to other constituencies,” Clayton said.
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Patomak Global Partners LLC CEO Paul Atkins takes part in a strategic and policy CEO discussion with President Donald Trump in the Eisenhower Execution Office Building in Washington, on April 11, 2017. (REUTERS/Joshua Roberts/File Photo / Reuters Photos)
Part of the draw of having Atkins as Wall Street’s top cop, according to senior transition team officials, is his deep understanding of the $100 trillion securities markets that fall under the SEC’s purview and of its internal operations, gained through a decade of experience working at the agency. Atkins was appointed a GOP commissioner in 2002 and served for six years in the role alongside Republican chairs Harvey Pitt, William Donaldson and Christopher Cox. During that time, he advocated for more transparent and consistent rulemaking and enforcement, as well as easier access to financial markets. Prior to this, he was a staffer to former GOP chairs Richard C. Breeden and Arthur Levitt.
Another of Atkins’ selling points is that he’s pro-crypto, a quality that aligns with Trump’s promise to prioritize the search for an SEC chair who would counter Gensler’s aggressive crackdown on the industry. In addition to promising to “fire” Gensler on day one and make the U.S. the “crypto capital of the planet,” Trump also pledged to appoint a chair who “will build the future, not block the future.”
Atkins, who has spoken publicly about the need to develop best practices for digital assets and the platforms they trade on, has served since 2017 as co-chair of the Token Alliance – an industry-led initiative made up of former regulators, industry experts and lawyers to promote the mainstreaming of digital assets. He also sits on the Board of Advisors for the Digital Chamber of Commerce, a leading crypto advocacy group based in Washington D.C.
“Paul is uniquely position to support President-elect Trump’s vision of solidifying the U.S. as the global leader in digital asset innovation,” said Cody Carbone, president of the Digital Chamber of Commerce. “Paul will bring not only the experience and digital asset expertise to the Commission, but usher in the clarity this industry deserves Day 1. It’s a home run selection.”
One industry source tells FOX Business that Atkins recently voiced a desire to let GOP Commissioner Hester Peirce, known as “Crypto Mom,” lead on crypto policy alongside her fellow GOP Commissioner Mark Uyeda. FOX Business has previously reported that Peirce wants to lead an internal crypto task force that would, in part, re-evaluate the agency’s approach to digital assets and create an open dialogue with industry. Peirce’s term is up in June, and it’s unclear if she wants to be re-nominated for the position. Uyeda’s term is set to end in 2028.
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The seal of the Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, D.C. (REUTERS/Jonathan Ernst/File Photo / Reuters Photos)
When Trump takes office in January, he will be able to nominate at least three new commissioners, including two Republican candidates and at least one non-Republican, as SEC rules limit any one political party to three of the five commission seats. This means that, much like he did with the Supreme Court, Trump will be able to stack the SEC with picks of his choice, allowing for a commission that will likely favor a pro-business approach and a lighter regulatory touch.
“President-elect Trump has made a superb choice in SEC Chair,” said Chris Giancarlo, former head of the Commodity Futures Trading Commission during Trump’s first term. “Paul Atkins is widely known for his professional integrity and intelligence. As a former Commissioner, he has enormous knowledge and respect for the agency. He will encourage technological innovation, crypto and digital finance after years of regulatory hostility. I am certain that Paul Atkins will return the SEC to its historic role in enabling capital formation and American economic growth.”
