Former member of the US Securities and Exchange Commission, Paul Atkins, is set to testify before lawmakers on the Senate Banking Committee on March 27 as part of the Trump administration’s strategy to appoint its candidates to significant government roles.
Since President Donald Trump assumed office on January 20, the SEC, led by acting chair Mark Uyeda, has halted several investigations and enforcement actions concerning major cryptocurrency companies, many of which had faced legal battles for extended periods. Analysts interpret the SEC’s recent decisions as the administration fulfilling its campaign promises to the crypto sector, a group that contributed to Trump’s election campaign after the November 5 election.
The commission’s actions—including a declaration that memecoins are not classified as securities—mark a stark departure from the previous stance under chair Gary Gensler. This shift has prompted speculation that the SEC under the Trump administration could facilitate a flourishing US crypto market with reduced regulatory oversight.
Atkins, appointed by Trump in December 2024 and nominated officially following his inauguration, has garnered support from industry leaders at Coinbase and Ripple, organizations previously involved in SEC enforcement actions that have now been dismissed.
Given the SEC’s apparent reversal on crypto regulation and Trump’s potential conflicts of interest with the industry—particularly links to the crypto entity World Liberty Financial and the introduction of his own memecoin—some lawmakers are expected to scrutinize Atkins’ perspectives on digital assets during the confirmation hearing.
If approved by the Senate, Atkins could join a commission likely dominated by Republicans, as Democratic Commissioner Caroline Crenshaw is anticipated to exit by 2026.
It remains uncertain whether Atkins will secure sufficient votes in the banking committee or during a full Senate vote. The Republican majority holds 53 seats, and only 51 votes are necessary for confirmation. Except for former Representative Matt Gaetz’s opposition to a nominee for Attorney General, Republicans have indicated they do not plan to challenge Trump’s selections for important governmental positions.
### Opposition from Democrats to Atkins’ Nomination
Massachusetts Senator Elizabeth Warren, the leading Democrat on the banking committee who has often compared cryptocurrency to illicit activities like drug trafficking, expressed concerns in a March 23 letter to Atkins regarding his potential SEC role. She highlighted that his consulting firm, Patomak Global Partners, advised the now-defunct crypto exchange FTX and that he was also a consultant for the advocacy group, the Chamber of Digital Commerce.
“Your extensive involvement with FTX and other well-compensated crypto clients suggests questions about your regulatory approach and raises concerns about your awareness of FTX’s illicit actions,” Warren stated, adding:
> “Your financial ties to the industries you are set to regulate lead to serious questions about your ability to prevent conflicts of interest in your role as a regulator.”
Warren indicated that several Senate members would likely question Trump’s nominee regarding the SEC’s recent decision to drop enforcement actions against crypto firms, reported conversations between Trump’s family and Binance about acquiring an ownership stake, and how Atkins plans to interpret securities laws concerning digital assets if confirmed. She also alluded to possible communications Atkins may have had with Republican SEC commissioners Uyeda and Hester Peirce following his nomination.
Prior to the hearing, Atkins has already met with Republican committee members, including Senator Cynthia Lummis from Wyoming. Attempts to contact Lummis’ office for comments regarding Atkins’ nomination did not receive a response by the time of publication.
Should his nomination successfully navigate the Banking Committee and Senate, Atkins would likely be confirmed for a term ending in June 2031, succeeding Uyeda as chair. This is in light of the SEC’s cessation of investigations and enforcement actions, as well as Uyeda’s proposal to eliminate requirements for crypto firms to register with the agency.