Ahead of his confirmation hearing before the U.S. Senate Banking Committee, Paul Atkins — nominated by former President Trump to lead the U.S. Securities and Exchange Commission (SEC) — revealed he holds up to $6 million in cryptocurrency assets. This disclosure has prompted Senator Elizabeth Warren (D-Mass.) to voice her concerns.
In a Sunday letter to Atkins, Warren emphasized that Atkins’ previous experience as a consultant and lobbyist for the financial sector could lead to conflicts of interest if he is confirmed.
“You also have served as an expert witness hired by Wall Street firms accused of engaging in Ponzi schemes and other misconduct that you would now be responsible for investigating as SEC Chair. Furthermore, you have served as a Board Advisor to the Digital Chamber, a registered lobbying group for the crypto industry. In these roles, you and your firm were paid by the same companies that you would now be responsible for regulating,” Warren wrote.
“This will raise serious concerns about your impartiality and commitment to serving the public interest if you are confirmed to serve as the next SEC Chair."
Warren urged Atkins to mitigate potential conflicts by recusing himself from any SEC matters involving former clients and to refrain from lobbying or consulting for at least four years post-departure from the SEC. She has requested a written response from Atkins by Thursday.
Another letter, also sent Sunday, posed a series of questions regarding how Atkins envisions the cryptocurrency sector should be regulated.
According to recent financial disclosures, Atkins has a family fortune exceeding $328 million, primarily from his wife’s family connection to roofing supply company TAMKO Building Products. His risk consultancy, Patomak Global Partners, which Atkins pledges to divest from if confirmed, is valued between $25 and $50 million.
Atkins’ crypto assets include up to $6 million, with a $1 million equity stake in crypto custodian Anchorage Digital and tokenization firm Securitize, where he held a board position until February. He’s also claimed a stake of up to $5 million in the investment firm Off the Chain Capital, which invests in major crypto players like Digital Currency Group (DCG) and Kraken, as well as in bankruptcy claims related to Mt. Gox.
Atkins submitted a filing with the Office of Government Ethics, promising to divest from Off the Chain Capital within 120 days of his confirmation. He has already resigned from his roles on the boards of the Digital Chamber of Commerce and the Token Alliance of the Chamber of Digital Commerce.
Atkins’ connections to the crypto industry stand in contrast to former SEC Chair Gary Gensler, known for his strict regulatory approach to cryptocurrencies. As Atkins’ confirmation approaches, the current SEC leaders, including Acting Chair Mark Uyeda and Commissioner Hester Peirce, have been revising the agency’s cryptocurrency regulation strategies, engaging industry participants in discussions at the SEC’s headquarters and reducing many investigations against crypto companies.
