31-3-2025 – Paul Atkins, the nominee for chair of the US Securities and Exchange Commission (SEC), encountered robust opposition during a contentious Senate Banking Committee hearing. The former SEC commissioner faced particularly pointed criticism regarding his extensive ties to the cryptocurrency industry and potential conflicts of interest.
Selected by President Donald Trump in December 2024 to lead the financial regulator, Atkins previously served at the Commission between 2002 and 2008. He subsequently established the consultancy firm Patomak Global Partners, which has become central to concerns about his nomination.
The Atkins family commands substantial wealth, with assets estimated at $327 million, including significant holdings across various enterprises. Notably, the nominee has directed up to $6 million specifically into cryptocurrency investments—a sector he would be tasked with regulating if confirmed.
In anticipation of potential confirmation, Atkins has pledged to divest his ownership stake in Patomak Global Partners and relinquish his management responsibilities at the firm—steps designed to address conflict of interest concerns.
Warren leads opposition
Senator Elizabeth Warren emerged as the nomination’s most vocal critic, raising particularly sharp questions about Atkins’ professional relationship with the collapsed cryptocurrency exchange FTX. Warren implied potential impropriety in these connections, noting that the nominee’s consultancy had indeed provided advisory services to FTX in early 2022, as documented by the Wall Street Journal.
“Unfortunately, his experience at the Office of the Comptroller of the Currency during Trump’s first term and his role as an advocate for large financial counterparties suggest that he may see this appointment as an opportunity to favour his Wall Street cronies,” Warren asserted. “Atkins has built his career helping billionaires, including Sam Bankman-Fried, who was convicted of one of the largest frauds in US history.”
Warren’s critique extended beyond cryptocurrency connections, suggesting that Atkins’ regulatory approach during the 2008 financial crisis demonstrated poor judgement. She also demanded transparency regarding his planned divestiture from Patomak Global Partners, insisting that both the financial terms and the identity of purchasers be disclosed to prevent what she characterised as potential bribery concerns.
Broader committee concerns
Other committee members articulated additional reservations. Chairman Tim Scott emphasised that any new SEC leadership must present concrete strategies to recoup losses from unsuccessful Commission legal cases, specifically referencing the DEBT Box litigation.
Senator John Kennedy adopted a particularly aggressive stance, demanding that Atkins commit to pursuing legal action against Sam Bankman-Fried’s parents, whom Kennedy explicitly labelled as fraudsters. Kennedy expressed frustration over what he perceived as the SEC’s inaction on this matter.
Addressing these criticisms, Atkins rejected Warren’s assertion regarding his role in the 2008 financial crisis, instead attributing responsibility to mortgage finance companies Fannie Mae and Freddie Mac.
Looking forward, Atkins identified the development of a comprehensive regulatory framework for cryptocurrency assets as his primary objective should his nomination receive approval. He additionally expressed intentions to implement broader reforms across the Commission.
The nomination process now advances to a committee vote, after which Atkins and three other candidates for various SEC positions will face final confirmation proceedings before the full Senate.
