US President elect Trump nominated conservative lawyer Paul Atkins as the Chairman of the US Securities and Exchange Commission (SEC) on Wednesday. This person who has long been skeptical of financial regulation is expected to work towards reducing red tape and restraining the enforcement agencies of the SEC. At the same time, the news that Atkins, who has always supported cryptocurrencies, is about to take office has ignited a new round of Bitcoin's surge overnight
Over the past few decades, Atkins has been well-known in both the US Congress and Wall Street, having served as a Republican SEC commissioner during the Bush administration. At that time, he often opposed some cumbersome regulatory measures that he deemed unnecessary.
Many industry insiders have stated that if Atkins' nomination is approved in the future, although he may not easily repeal core investor protection measures, he may re-examine or modify many of the SEC's measures during the Biden administration. Current SEC Chairman Gary Gensler plans to step down on January 20th.
Although the SEC has also been involved in the development of many regulations, it is primarily an enforcement agency. During the tenure of current SEC Chairman Gary Gensler, the agency imposed record fines on multiple companies, with fines totaling $8.2 billion last year alone. The industry expects that if Atkins' appointment is confirmed, the trend of increasing fines may come to an end.
In 2006, Atkins supported a series of guidelines from the US Securities and Exchange Commission, which recommended caution in the use of penalties against listed companies. He tends to sue individual wrongdoers and believes that forcing companies to pay fines is not advisable.
Atkins was also a prominent opponent of the Dodd Frank Act passed after the 2008 financial crisis. He testified multiple times in Congress that the bill gives regulators too much power to decide how to limit the risky behavior of large banks.
The federal court has previously repealed some of the SEC regulations that Atkins opposed. The business group has successfully filed a lawsuit challenging the SEC's new disclosure requirements regarding stock buybacks, climate change, and how private equity and hedge fund managers communicate with clients.
In addition, according to sources familiar with the situation, Atkins and others who participated in SEC job interviews were asked to provide ideas for restructuring the SEC to comply with the incoming Trump administration's commitment to cutting spending and controlling the size of federal agencies. Elon Musk, the world's richest man, and former presidential candidate Ramaswami are currently working together to lead Trump's efforts to reduce government spending through the newly established government efficiency department.
On Wednesday, Trump wrote on his social media platform Truth Social, "Atkins is a proven leader in common sense regulation. He also agrees that digital assets and other innovations are crucial to making America great again
Coin frenzy
For many cryptocurrency investors, the biggest label on Atkins is undoubtedly that he is a well-known fan of the cryptocurrency industry
Atkins has questioned the SEC's crackdown on cryptocurrency companies and may adopt a more friendly attitude towards the market, which is consistent with Trump's recent favorable impression of the industry. Many other Republicans also hope that the SEC can approach the cryptocurrency market with a more friendly attitude than during the Biden administration.
Under the leadership of current chairman Gary Gensler, the SEC has sued many of the largest cryptocurrency exchanges in recent years, accusing these platforms of trading illegal assets without regulatory oversight. Gensler also refuses to customize rules for the cryptocurrency market, stating that many digital assets are securities and should comply with current investor protection regulations.
In response, Atkins and other SEC critics argue that Gensler's management approach is too rigid for cryptocurrencies designed to run on peer-to-peer computer networks. The SEC's approach has led to an increasing shift in cryptocurrency market activity towards Asia and Europe, where governments have specifically designed regulatory frameworks for digital assets.
Atkins said on a podcast last year, "If the U.S. Securities and Exchange Commission could be more tolerant and deal directly with these companies, the situation in the United States would be much better
Affected by the news of Trump's selection of Atkins to head the US Securities and Exchange Commission, the price of Bitcoin rose sharply by nearly 5% overnight, once exceeding $99000 and once again approaching the $100000 mark.
Law firm Willkie Farr& Michael Selig, partner of Gallagher's digital asset business, stated that Atkins is expected to take swift action to end the practice of "weaponizing" federal securities laws against the cryptocurrency industry.