Senator Elizabeth Warren questions SEC chair nominee Paul Atkins

Democrat Senator Elizabeth Warren, representing Massachusetts, has raised concerns about the nominee for Securities and Exchange Commission chair, Paul Atkins. In a 34-page letter, Warren questioned Atkins’ previous relationships, including ties to failed crypto exchange FTX.

Warren, popular for her anti-crypto army, said the position of SEC Chair is significant as the agency oversees a $120 trillion capital market, and its decisions affect millions of Americans. Thus, she is concerned that Atkins is not right for the role, citing potential conflicts of interest and his call for weaker SEC regulations.

She wrote:

“This record raises questions about your judgement and your ability to serve as an effective SEC Chair if you are confirmed.”

The letter noted that Atkins was an SEC commissioner during the 2008 financial crisis and was also connected to the FTX crypto exchange. It also noted that the SEC chair nominee was a major contributor to Project 2025 and has a history of working for corporate interests.

The senator further asked multiple questions that Atkins is expected to respond to during the committee hearing on his nomination. These questions address the SEC’s independence and accountability, the agency’s rulemaking, private capital raising, and other major issues, including  AI and trading gamification.

Warren questions Atkins on crypto

Unsurprisingly, one of the issues identified was crypto regulation and enforcement and how the SEC under the new administration will handle this. Warren, known for strong anti-crypto sentiments, noted recent changes in the SEC regulatory approach and Atkins’ deep involvement with the crypto sector, including serving as an advisor to the Chamber of Digital Commerce since 2020 and FTX for 10 months leading into its bankruptcy.

On his FTX affiliations, the Senator requested information on how much Atkins and his firm Patomak Global Partners got as compensation for his role at FTX  and how he was advising Sam Bankman-Fried before the collapse. Atkins had said at the time of FTX’s bankruptcy that the exchange failure was because the US rules were not accommodating for new technologies.

She said:

“Your deep involvement with FTX and other high-paying crypto clients raises questions about your approach to crypto regulation- and concerns about the extent of your knowledge of FTX’s illegal activities.”

Beyond asking about Atkins’s role with FTX, Warren also asked about crypto regulations and enforcement, including the status of crypto tokens, memecoins, and whether the SEC should regulate the spot crypto market. She specifically queried whether Atkins was consulted before the SEC dropped its case against Tron Network co-founder Justin Sun and paused the case against Binance.

Letter unlikely to affect Atkins’ chances

Meanwhile, the letter asked Atkins to respond with his answers before the hearing scheduled for March 27  and to provide complete written answers before the Banking Committee votes on the nomination.

Despite the stern tone of the letter and the several questions raised, it is unlikely to prevent the Senate confirmation of Atkins, who has been nominated since December. Warren had also raised similar issues with Commerce Secretary Howard Lutnick before his confirmation in February.

Republicans have a slight majority in the Senate, and Atkins only requires 51 out of the 53 republicans Senators to vote in his favor for confirmation. So far, none of them have said anything publicly to suggest they will oppose his nomination.

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