Lawmakers from the US Senate Banking Committee raised concerns during a recent nomination hearing about Paul Atkins, a candidate for a position at the Securities and Exchange Commission (SEC), regarding his connections to the cryptocurrency sector and his potential approach to regulating digital assets if appointed.
During the hearing on March 27, Senator Elizabeth Warren from Massachusetts pointed out that Atkins, who previously served as an SEC commissioner from 2002 to 2008, demonstrated “staggeringly bad judgment” leading up to the 2008 financial crisis. She also pressed him to reveal the buyers of his consulting firm, Patomak Global Partners, which provided advice to the now-defunct crypto exchange FTX, to clarify any potential conflicts of interest in relation to the digital asset market.
“Your clients are paying you over $1,200 an hour for guidance on how to engage with regulators like the SEC, and should you be confirmed, you would be in a prime position to represent these clients who have compensated you with millions over the years,” said Senator Warren, implying that Atkins’ assessments “might be swayed by more than an objective analysis of the facts.”
On March 23, Warren sent a letter to Trump’s SEC nominee urging him to come prepared to address queries regarding his connections to the cryptocurrency industry via Patomak. During the March 27 session, she again asked Atkins about the prospective buyers of his firm — he indicated he intended to sell the company if confirmed — urging caution about who might be looking to gain access to the future chair of the SEC.
Atkins responded that he would “adhere to the process” but did not provide a clear response to Warren’s inquiry. She speculated that the potential sale of Patomak could be viewed as a “pre-bribe” for the services of the former SEC commissioner.
This report is ongoing, and additional information will be provided as it becomes available.