President-elect that of Donald Trump candidate for the Securities and Exchange Commission, Paul Atkinsis the subject of an ethics review following the revelations of $3 million in consulting fees received by his firm, Patomak Global Partners. These payments came from entities that Atkins could soon oversee.
What happened: Atkins, who started Patomak Global in 2009, has garnered support from trade groups in the crypto and investment industries.
Some of those groups, which were clients of Patomak, collectively paid the company more than $3 million over the past decade, Barron’s reported, citing an analysis of public records.
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Patomak’s clientele includes banks, fintech companies and cryptocurrency exchanges. In particular, the Institute of Investment Companies (ICI) compensated Patomak with more than $1.5 million between 2014 and 2021.
ICI supported Atkins, citing his understanding of the role of registered fund companies in the U.S. economy.
Atkins’ potential role as SEC chairman could significantly influence ongoing and future enforcement actions against cryptocurrency companies.
His nomination is subject to Senate confirmation, where his past work and compensation will likely be scrutinized.
Why it’s important: Known for his pragmatic approach to regulation and his wealth of experience, Atkins is seen as a potential disruptor in the financial services landscape, particularly in the crypto sector.
His previous tenure as SEC Commissioner from 2002 to 2008, under Chairman George W. Bushas well as his later work at Patomak, solidified his reputation within conservative financial circles.
However, Atkins would be unsure about taking on the SEC role.
According to a source familiar with the matter, Atkins’ hesitations are linked to the considerable work necessary to overhaul what he perceives as a cumbersome and poorly managed agency during the 2000s. That of Gary Gensler direction.
Under Gensler’s leadership, the agency has been criticized for its aggressive stance on cryptocurrency regulatory enforcement, contributing to instability in a rapidly changing market.
Previously, former Chairman of the CFTC Chris Giancarloknown as “Crypto Dad,” advocated for the transfer of crypto regulation from the SEC to the Commodity Futures Trading Commission.
Giancarlo says the CFTC’s lighter-touch regulatory approach could foster innovation while preserving market integrity.
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