Advocacy groups representing institutional investors have praised President-elect Donald Trump’s nomination of Paul Atkins to chair the Securities and Exchange Commission. Atkins, an SEC commissioner between 2002 and 2008, is the founder and CEO of risk management and compliance consultancy Patomak Global Partners.
“Paul is a proven leader for common sense regulations,” stated Trump’s Wednesday announcement on Truth Social. “He believes in the promise of robust innovative capital markets that are responsive to the need of investors, and that provide capital to make our economy the best in the world.”
Atkins is expected to replace SEC Chairman Gary Gensler, who announced he would step down from his position upon Trump’s January 20, 2025, inauguration. Gensler’s term was set to end in 2026.
In a statement, the American Securities Association, an advocate for retail and institutional capital markets interests, applauded the nomination.
“ASA welcomes Paul Atkins’ nomination to lead the SEC, and we applaud President Trump for making an excellent choice with this pick,” said Chris Iacovella, the ASA’s CEO and president, in a statement. “Paul is well-versed on investor protection, capital markets, market structure, and public company issues. We look forward to working with him to rebuild the public’s trust and confidence in the agency.”
The Investment Advisers Association, an advocacy firm which represents investment advisory firms, also commended Atkin’s nomination.
“The IAA congratulates Paul Atkins on being nominated as the Chair of the Securities and Exchange Commission,” an IAA release stated. “Atkins is an experienced and thoughtful regulator who understands the crucial role that investment advisers play for their clients and the need to calibrate regulation for small businesses.”
The Investment Company Institute, a lobbying firm representing regulated Investment funds, stated that “[Atkins’] distinguished record, years of experience in the industry, and history of service at the SEC make him a supremely well qualified nominee. Atkins understands that registered fund companies play a major role in the US economy. His leadership will be vital to ensuring the strength, fairness, and integrity of our financial markets. We look forward to working with him to promote the interests of registered funds and the more than 120 million investors they serve.”
Atkins is not without critics; he was a commissioner when the Madoff Investment Securities fraud occurred without detection by the SEC, and his tenure led up to the global financial crisis of 2008 and 2009.
“The U.S. stock market is the envy of the world precisely because the SEC promotes safe and transparent markets that protect investors from getting cheated, so I’m concerned about putting at the helm of the SEC a Wall Street lobbyist whose main contribution during the last financial crisis was to protest fines against the giant corporations that defrauded investors,” said Senator Elizabeth Warren, D-Massachusetts, in a statement. Warren is expected to become the ranking Democratic member of the Senate Committee on Banking, Housing, and Urban Affairs in the next Congress.
Debate Over Cryptocurrency Continues
Atkins is considered supportive of the cryptocurrency industry, and after his nomination, the price of bitcoin rose greater than $100,000 for the first time. Atkins’ nomination was praised by those in the crypto industry, who bemoaned what they considered overregulation by the SEC under Gensler.
Since 2017, Atkins has been a member and co-chair of the Chamber of Digital Commerce’s Token Alliance, a blockchain trade association.
“Paul Atkins is an excellent choice by President-elect Trump for SEC chair,” said Kristin Smith, CEO of crypto advocacy firm the Blockchain Association. “The past four years under Chair Gensler was a non-stop anti-crypto crusade, leading to an innovation stalemate and incalculable job, talent, and economic losses. Paul Atkins will offer a new perspective, anchored by a deep understanding of the digital asset ecosystem.”
Consumer advocacy nonprofit Public Citizen was critical of Atkins’ nomination, accusing the crypto industry of buying itself the control of the “nation’s investor protection police.”
“Any sentient being—let alone a securities markets expert—should understand that bitcoin is ‘thin air,’ as Trump himself once put it,” said Bartlett Naylor, a financial policy advocate at Public Citizen, in a scathing statement. “That Paul Atkins has made a living promoting such a scam doesn’t bode well for his reflexes as a shepherd for investor protection. As an SEC veteran, industry consultant and lobbyist, Atkins will be keenly able to reshape the SEC, either to vandalize or improve investor protections. We obviously hope he understands that, if confirmed, he will be expected to work on behalf of average Americans, not his consulting clients, crypto or otherwise.”
Atkins must be confirmed by the Senate before assuming the position on January 20, 2025.
Related Stories:
Trump Nominates Former SEC Commissioner to Top Job
What Scott Bessent’s Appointment Means for Institutional Investors
SEC Chair Gensler to Step Down January 20
Tags: American Securities Association, Investment Adviser Association, Paul Atkins, SEC, Securities and Exchange Commission