Senator Elizabeth Warren has called on SEC chair nominee Paul Atkins to address his track record of minimal regulation, connections to the failed FTX cryptocurrency exchange, and his participation in efforts to weaken essential investor protections.
In a strongly worded 34-page letter, Senator Warren questioned whether Atkins, who previously served as an SEC commissioner and has been a long-time consultant for the industry, can objectively lead the agency amidst current market volatility and waning investor confidence.
She referenced his advisory capacity at FTX before its downfall, his resistance to significant reforms under Dodd-Frank, and his involvement in Project 2025 — a policy initiative that aims to reduce SEC enforcement capabilities and abolish oversight entities such as the PCAOB and FINRA.
Earlier this month, Warren sent a similar letter to the White House cryptocurrency advisor David Sacks, expressing concerns about whether Sacks’ advisory role has provided him with personal financial benefits.
Crypto, conflicts, and political meddling
Senator Warren pointed out that Atkins’ firm, Patomak Global Partners, has provided counsel to clients facing SEC enforcement actions while charging rates as steep as $1,300 an hour. She insisted on full transparency regarding Patomak’s clientele and questioned whether Atkins would disqualify himself from any rule-making or investigations that involve them.
Warren also expressed her disapproval of Atkins’ involvement with FTX in the lead-up to its collapse, arguing that his relationship with the now-defunct crypto exchange raised severe questions about his judgment and capability to oversee financial misconduct.
Additionally, she highlighted concerns regarding his advisory role with the Chamber of Digital Commerce and whether his extensive connections to the crypto sector could sway enforcement actions.
This letter comes in light of a series of abandoned SEC cases, including the high-profile lawsuit against Ripple, just days after CEO Brad Garlinghouse reportedly attended an event at the White House and contributed $5 million to President Donald Trump’s inaugural fund.
Rollback of regulation
Senator Warren inquired whether Atkins plans to uphold the SEC’s enforcement against cryptocurrency fraud, implement new short sale disclosure requirements mandated by Dodd-Frank, and maintain independence from political influences — especially in cases involving companies associated with Trump or his affiliates.
Atkins previously opposed sanctions for corporate wrongdoing, supported abusive executive stock options, and criticized climate risk disclosures, labeling them as regulatory overreach.
Senator Warren cautioned that his nomination may herald a shift back towards “pre-crisis deregulation,” which could jeopardize market stability and diminish public trust.
Warren emphasized that “the American people deserve clear answers” and urged Atkins to address over 100 specific inquiries prior to his confirmation hearing, which has yet to be scheduled.
As of the time of this report, Atkins has not made a public statement.
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