Paul Atkins, candidate for the chairmanship of the SEC, has been criticised for links to FTX and possible conflicts of interest. Warren accuses him of corruption.
The nominee for chair of the US Securities and Exchange Commission (SEC), Paul Atkins, was heavily criticised during a hearing before the Senate Banking Committee. He was accused of close ties to the cryptocurrency industry, including the FTX platform, and a potential conflict of interest.
SEC and a potential conflict of interest
Who is Paul Atkins?
In December 2024, US President Donald Trump selected him as his candidate for SEC chair. Atkins previously worked at the Commission from 2002 to 2008 and is the founder of the consulting firm Patomak Global Partners.
The Atkins couple's assets are estimated at $327 million, including stakes in several companies. At the same time, the candidate for the leadership of the SEC has invested up to $6 million in the crypto sector.
If elected, Atkins will be forced to reduce part of his portfolio and leave leadership positions in some companies. In particular, he intends to sell his stake in Patomak Global Partners and leave the management of the company.
Criticism of Atkins in the Commission
Among the main opponents of Atkins' nomination to chair the SEC is Senator Elizabeth Warren, known for her scepticism towards cryptocurrencies. Warren has veiled accusations of accepting a bribe and highlighted her close relationship with the now-bankrupt FTX exchange.
The senator also criticised the Trump administration and the Department of Government Efficiency (DOGE) under the leadership of billionaire Elon Musk, saying the government needs 'strong leadership' at the SEC.
"Unfortunately, his experience at the Office of the Comptroller of the Currency (OCC) during Trump's first term and his role as an advocate for large financial counterparties suggest that he may see this appointment [to head the SEC] as an opportunity to favour his Wall Street cronies. [...] Atkins has built his career helping billionaires, including Sam Bankman-Fried, who was convicted of one of the largest frauds in US history, said Warren.
It should be noted that FTX was actually a client of Patomak Global Partners. The firm signed a contract with the exchange to provide advisory services in early 2022, as reported by the Wall Street Journal.
Warren also accused Atkins of making mistakes during the 2008 financial crisis in his role as SEC commissioner.
Commenting on Atkins' intention to sell his stake in the advisory firm, Warren called for the amount of the deal and the recipient of the shares to be revealed. According to the senator, if the details of the deal remain confidential, it could be interpreted as a bribe and an attempt to influence the new SEC chairman.
Other members of the committee also criticised Atkins. Chairman Tim Scott insisted that the new SEC chief must present a clear plan to recoup the Commission's losses in several lost cases, including the DEBT Box case.
Senator John Kennedy demanded that Atkins initiate proceedings against the parents of Sam Bankman-Fried, calling them fraudsters and pointing out that the SEC has made no progress in this matter.
Atkins said that if his nomination is approved, his main priority will be to develop a regulatory framework for crypto assets. He also expressed his intention to reform the SEC.
He also dismissed Warren's accusations, denying that her actions accelerated the 2008 financial crisis. According to Atkins, responsibility for the crisis lies with Fannie Mae and Freddie Mac.
In addition to Atkins, the commission is considering three other candidates for different roles. The next step will be a vote, after which the nominees will be presented to the Senate for final approval.
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The nominee for chair of the US Securities and Exchange Commission (SEC), Paul Atkins, was heavily criticised during a hearing before the Senate Banking Committee. He was accused of close ties to the cryptocurrency industry, including the FTX platform, and a potential conflict of interest.
SEC and a potential conflict of interest
Who is Paul Atkins?
In December 2024, US President Donald Trump selected him as his candidate for SEC chair. Atkins previously worked at the Commission from 2002 to 2008 and is the founder of the consulting firm Patomak Global Partners.
The Atkins couple's assets are estimated at $327 million, including stakes in several companies. At the same time, the candidate for the leadership of the SEC has invested up to $6 million in the crypto sector.
If elected, Atkins will be forced to reduce part of his portfolio and leave leadership positions in some companies. In particular, he intends to sell his stake in Patomak Global Partners and leave the management of the company.
Criticism of Atkins in the Commission
Among the main opponents of Atkins' nomination to chair the SEC is Senator Elizabeth Warren, known for her scepticism towards cryptocurrencies. Warren has veiled accusations of accepting a bribe and highlighted her close relationship with the now-bankrupt FTX exchange.
The senator also criticised the Trump administration and the Department of Government Efficiency (DOGE) under the leadership of billionaire Elon Musk, saying the government needs 'strong leadership' at the SEC.
It should be noted that FTX was actually a client of Patomak Global Partners. The firm signed a contract with the exchange to provide advisory services in early 2022, as reported by the Wall Street Journal.
Warren also accused Atkins of making mistakes during the 2008 financial crisis in his role as SEC commissioner.
Commenting on Atkins' intention to sell his stake in the advisory firm, Warren called for the amount of the deal and the recipient of the shares to be revealed. According to the senator, if the details of the deal remain confidential, it could be interpreted as a bribe and an attempt to influence the new SEC chairman.
Other members of the committee also criticised Atkins. Chairman Tim Scott insisted that the new SEC chief must present a clear plan to recoup the Commission's losses in several lost cases, including the DEBT Box case.
Senator John Kennedy demanded that Atkins initiate proceedings against the parents of Sam Bankman-Fried, calling them fraudsters and pointing out that the SEC has made no progress in this matter.
Atkins said that if his nomination is approved, his main priority will be to develop a regulatory framework for crypto assets. He also expressed his intention to reform the SEC.
He also dismissed Warren's accusations, denying that her actions accelerated the 2008 financial crisis. According to Atkins, responsibility for the crisis lies with Fannie Mae and Freddie Mac.
In addition to Atkins, the commission is considering three other candidates for different roles. The next step will be a vote, after which the nominees will be presented to the Senate for final approval.
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The community for Blockchain, Cryptocurrency and Innovative Technologies enthusiasts, combining Passion, Knowledge and Opportunities in the Digital World
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