Article Author, Source: 0x9999in1, MetaEra

On March 27, Paul Atkins, former SEC commissioner and nominee for SEC chairman by President Donald Trump, attended a Senate Banking Committee hearing. Previous analysis by MetaEra indicated that the SEC's adjustments over the past three months mark its attempt to transition from "confrontational regulation" to "dialogue governance." So, what new insights and plans did SEC chairman nominee Paul Atkins bring to the cryptocurrency industry during this crucial hearing?

Promoting Benefits and Eliminating Harms: Leading SEC Towards Deregulation

Paul Atkins first criticized several policies from former SEC chairman Gary Gensler's tenure, including the federal court's overturning of SEC rule-making, rising employee turnover rates, and controversial enforcement actions against cryptocurrency companies. He advocated for a shift towards deregulation, emphasizing the need to establish a clear and effective rule system that promotes innovation while maintaining market integrity, vowing to lead the SEC back to its core mission—"to protect investors, maintain market efficiency, and facilitate capital formation."

Responding to Questions: Using Public Interest and SEC's Legal Responsibilities as Guidelines

During the hearing, Senator Elizabeth Warren sharply questioned Paul Atkins about his connections with the cryptocurrency industry and financial institutions. In her written questions submitted before the hearing, Warren specifically pointed out that Paul Atkins had provided advisory services to the now-bankrupt FTX exchange, questioning his ability to maintain a neutral stance. She also revealed that Paul Atkins' personal financial disclosure showed he held approximately $6 million in cryptocurrency-related assets, demanding that he commit to avoiding cases involving former clients during his tenure and guarantee not to enter the financial industry for four years after leaving office. She then accused Paul Atkins of long-term profiteering for billionaire CEOs (like Sam Bankman-Fried) and helping them become even wealthier. Warren stated, "He has been wrong on almost every judgment leading up to the biggest financial crisis since the Great Depression in the U.S.; such a record does not deserve promotion."

Paul Atkins responded that he would adhere to ethical standards, promising to divest all financial assets that could create conflicts of interest (including crypto assets) if appointed. Although he did not explicitly commit to adhering to a ban on industry involvement after taking office, he emphasized that all decisions would be guided solely by public interest and SEC's legal responsibilities. In response to Senator Chris Van Hollen's probing, he promised to thoroughly investigate the FTX incident.

Regulatory Framework: "Clear Principles, Sound Structure, Technologically Neutral"

Paul Atkins listed the establishment of a regulatory framework for digital assets characterized by "clear principles, sound structure, and technological neutrality" as a top priority, pointing out that the current ambiguity in rules has hindered innovation. He advocated for reasonable regulation to solidify the U.S.'s global leadership in financial innovation while opposing "overly politicized" rule-making, calling for the SEC to focus on its legal responsibilities rather than partisan agendas.

It is worth mentioning that Paul Atkins committed to operating the SEC transparently and listening to the opinions of the industry and consumers, which stands in stark contrast to the past.

The Wealthiest SEC Chairman

If confirmed, Paul Atkins would become the wealthiest SEC chairman in decades. According to disclosure documents submitted to the government ethics office, he and his wife Sarah have a net worth of at least $327 million, with Sarah being an heir to a roofing products company. Public documents indicate that his shares in the consulting firm Patomak Global Partners are valued at least $25 million. Paul Atkins stated that he would resign as CEO of the company within 90 days of confirmation.

As the SEC stands at a crossroads in its regulatory path, the outcome of Paul Atkins' nomination will profoundly impact the agency's policy direction in key areas such as the cryptocurrency market, enforcement priorities, and market structure reforms. The Senate Banking Committee will continue to review his nomination qualifications, and if approved by the committee, the nomination will be submitted to the full Senate for a final vote, requiring only a simple majority for confirmation.