Former SEC Commissioner Paul Atkins Emerges as Top Candidate to Succeed Gensler
The leadership race for the United States Securities and Exchange Commission (SEC) has intensified as President Donald Trump prepares to resume office in January 2025. Speculation about a successor to current SEC Chairman Gary Gensler is increasing.
Fox Business reporter Eleanor Terrett recently reported that former SEC Commissioner Paul Atkins is emerging as the leading candidate for the position. While the SEC Chairman is typically nominated with a new administration, this practice is not legally binding. Given Gensler's appointment by President Joe Biden in 2021, it is anticipated he will step down when the Biden administration concludes in January 2025.
A New Direction for Crypto Regulation?
Gensler’s tenure has been marked by aggressive enforcement policies, generating controversy within the crypto industry, which views his approach as detrimental to innovation.
In light of recent elections, several candidates are vying to replace Gensler, with Paul Atkins gaining traction. Atkins served as SEC Commissioner from 2002 to 2008 and advocates for regulatory frameworks that promote market growth, particularly in emerging technologies like blockchain.
Atkins differs from Gensler by emphasizing a balanced approach between innovation and regulation. His experience at the SEC under different leaders has equipped him with a nuanced understanding of the regulatory landscape and technological advancement.
If appointed, Atkins could implement clearer guidelines, potentially easing regulatory burdens that have strained relationships between crypto firms and the SEC.
Trump’s Potential Role in the Shift
Atkins’ possible SEC Chair appointment coincides with speculation that Trump's administration may shift cryptocurrency oversight from the SEC to the Commodity Futures Trading Commission (CFTC). Under former CFTC Chairman Christopher Giancarlo, the agency supported financial innovation, including approving Bitcoin options in 2017.
In 2022, Senators Cynthia M. Lummis and Kirsten Gillibrand introduced bipartisan legislation designating the CFTC as the primary regulator for cryptocurrencies such as Bitcoin and Ethereum. This bill granted the CFTC authority to develop regulatory policies for the industry; however, it has yet to enact rules regarding trading, custody, and issuance of digital assets.
The prospective regulatory changes under Trump's administration could significantly alter the landscape for cryptocurrencies in the US.