Trump's nominee to head the SEC was criticized at a Banking Committee hearing. Senator Elizabeth Warren said he has close ties to big banks and the crypto sector. She believes this poses a risk of potential conflict of interest. He was accused of close ties to the crypto sector, including the FTX exchange, and potential conflicts of interest. Who is Paul Atkins? In December 2024, U.S. President Donald Trump selected him as his nominee for SEC chairman. He has experience at the Commission - from 2002 to 2008. Atkins is also the founder of the consulting firm Patomak Global Partners. The Atkins couple's fortune is estimated at $327 million, including stakes in several companies. At the same time, the candidate for the next SEC chairman has invested up to $6 million in the crypto sector; If elected, Atkins is committed to reducing a portion of his portfolio, as well as leaving senior positions in certain companies. In particular, he intends to sell his stake in Patomak Global Partners and leave the management of the firm. The committee's criticism of Atkins Among the most vocal opponents of the candidate to become the new head of the SEC was cryptoskeptic Elizabeth Warren. She veiledly accused Atkins of taking bribes and blamed him for his close ties to the bankrupt FTX exchange. The senator also criticized the Trump administration's handling of the Department of Government Efficiency (DOGE) under billionaire Elon Musk, saying the nation needs a ”strong head” of the SEC. ”Unfortunately, your experience at the Office of the Comptroller of the Currency (OCC) during Trump's first term and as an attorney for large financial counterparties suggests that you may view this appointment [to head the SEC] as a way to support your Wall Street friends. [...] Atkins has built his career around helping billionaires, including Sam Bankman-Fried, who was convicted of one of the largest frauds in U.S. history,” Warren said. Note that FTX was indeed a client of Patomak Global Partners. The company signed a contract with the exchange to provide consulting services in early 2022. This, in particular, was pointed out by The Wall Street Journal . Warren also accused Atkins of misguided actions as commissioner during the 2008 financial crisis. Commenting on Atkins' intention to sell a stake in his consulting firm, Warren demanded that he disclose the amount of the deal and the recipient of the shares. According to her, if the details of the agreement are kept from the public, it could be seen as a bribe and an attempt to put pressure on the new head of the SEC. Atkins was also criticized by other committee members. In particular, Chairman Tim Scott insisted that the new SEC chief must present a clear plan to recoup the losses the Commission has suffered in a number of losing cases, including the DEBT Box. Sen. John Kennedy demanded Atkins bring charges against Sam Bankman-Fried's parents. The politician called them frauds, noting that the Commission never made any progress in the case. Directly Atkins himself noted that the main priority in case of approval of his candidacy will be the development of a regulatory framework for crypto-assets. At the same time, he expressed his intention to reform the SEC. He also rejected Warren's accusations that his alleged actions precipitated the financial crisis. Atkins shifted the blame for him to Fannie Mae and Freddie Mac. In addition to Atkins, the committee considered three other nominees for various positions. The next step is a vote, after which they will be nominated to the Senate as a whole.
