Trump has formally nominated pro-crypto Paul Atkins to succeed Gary Gensler as the next chairman of the U.S. Securities and Exchange Commission (SEC).

Paul Atkins, a 66-year-old Washington conservative who currently serves as CEO of Patomak Global Partners, is a well-known figure in the financial and Republican political circles. He served as an SEC commissioner during the administration of former US President George W. Bush and served as a policy adviser to Trump during his first term as president. According to a senior member of the transition team, this position lasted until Trump was elected on November 5, paving the way for Atkins to become SEC chairman.

He also has a deep connection with the crypto industry. Since 2017, Paul Atkins has served as co-chair of the Token Alliance, an industry-led initiative composed of former regulators, industry experts and lawyers to promote the mainstreaming of digital assets, and he is also a member of the advisory board of the Chamber of Digital Commerce, a crypto advocacy organization based in Washington, DC.

Sources told FOX Business that Paul Atkins met with Trump at Mar-a-Lago on Monday, his Florida residence and country club that also serves as the headquarters of his transition team. Others present at the meeting included Vice President-elect JD Vance and Vivek Ramaswamy.

The Wall Street Journal, citing people familiar with the matter, reported that Atkins and others interviewed for SEC positions were asked to offer ideas for restructuring the SEC to fit with the new administration's commitment to cut spending and control the size of federal agencies.

Trump praised Atkins' open attitude towards cryptocurrency in the announcement, saying: "Paul is a leader with extensive experience in developing reasonable and pragmatic regulations. He believes that strong and innovative capital markets can meet the needs of investors and provide capital to make our economy the best in the world. He also recognizes that digital assets and other innovations are essential to making the United States stronger than ever before."

Atkins, whose position still needs to be confirmed by the Senate, did not immediately respond to requests for comment.

Crypto Industry Reactions

Republican lawmakers and the crypto industry welcomed the news.

Brad Garlinghouse, CEO of Ripple, said: "Paul Atkins at the helm of the SEC will restore common sense to the agency. It is time to quickly and completely end the era of cryptocurrency prohibition and restore freedom of choice, economic growth and innovation."

Republican Senator Cynthia Lummis, who supports cryptocurrency, commented: “Paul Atkins’ nomination as SEC Chairman is a huge win for financial innovation. President Trump has promised to have the most pro-digital asset regulatory agency in American history, and I look forward to working with both of them to promote innovation and make our economy strong again.”

Coinbase Chief Legal Officer Paul Grewal congratulated Atkins in a post on X: “We applaud his commitment to a balanced approach to regulating the U.S. securities markets and look forward to his new leadership at the (SEC), which is urgently needed and cannot be delayed.”

“Atkins is uniquely positioned to support President-elect Trump’s vision to solidify the United States as a global leader in digital asset innovation,” said Cody Carbone, President of the Chamber of Digital Commerce. “Paul will not only bring experience and digital asset expertise to the Commission, he will also bring the clarity that the industry deserves on day one. This is a home run pick.”

If the Senate confirms Atkins, it would mark a new era at the SEC that will be very different from the Gensler tenure, which many viewed as characterized by an aggressive, overly politicized rulemaking agenda that strayed from the commission’s congressional mandate to provide fair and orderly markets and ensure investor protection.

One of Gensler’s most controversial edicts was mandating that public companies adopt certain environmental and social governance guidelines, including disclosing their carbon footprint. He is known for his tough enforcement policies — especially against the cryptocurrency industry, against which the SEC has brought more than 100 enforcement actions.

SEC watchers expect that under Atkins’ leadership, some of Gensler’s agenda will be overturned, including the climate disclosure rule, which is currently under review in federal court. The ruling was welcomed by progressive advocacy groups and politicians (such as crypto critic/senior Democratic Rep. Elizabeth Warren), but was widely criticized by business groups as costly, difficult to implement and potentially illegal because securities laws are not designed to force companies to enact social policies but to protect shareholders.

Once called the SEC’s “most conservative member”

Atkins, who began his career as a lawyer and worked in financial markets for many years, has experience in both government and private industry. He has served as an SEC commissioner since 2002, when the aftermath of scandals at companies such as Enron and WorldCom increased pressure on Wall Street and government regulators.

During his tenure, Atkins was widely considered the most conservative member of the SEC and was known for his strong free-market leanings, according to the Associated Press.

During his tenure as commissioner, he called for greater transparency of new SEC rules and analysis of their costs and benefits.

He also stressed the need to strengthen investor education and intensify the crackdown on those who steal investor funds through the Internet, manipulate the market, participate in Ponzi schemes and other types of fraud.

Atkins, meanwhile, opposes stiff penalties for companies accused of fraud, arguing they don’t deter crime.

In 2006, Atkins expressed support for a set of guidelines from the U.S. Securities and Exchange Commission that recommended the cautious use of penalties against public companies. He favored prosecuting individual offenders, arguing that forcing companies to pay fines would harm shareholders. This move sparked some controversial discussions.

Atkins was also a prominent opponent of the Dodd-Frank regulatory reform law passed after the 2008 financial crisis. He testified repeatedly before Congress that the law gave regulators too much power to decide how to limit risky behavior by big banks.

Brad Sherman, a California Democrat and ranking member of the House Financial Services Committee, said he was concerned that Atkins would not "adequately regulate" cryptocurrencies during his tenure as SEC chairman. He said: "He may decide that cryptocurrencies are not securities, and therefore exchanges that trade in crypto are not securities exchanges, which provides great opportunities to defraud investors."

Regulatory spring is coming, and the future of the crypto industry is promising

Atkins’ support for cryptocurrency is consistent with Trump’s promises. In addition to promising to “fire” Gensler on day one and make the United States the “cryptocurrency capital of the world,” Trump also promised to appoint a chairman who “will build the future, not hinder it.”

Atkins has publicly stated that there is a need to develop best practices for digital assets and the platforms that trade them. He said on a podcast last year: "If the SEC was more accommodating and was able to deal directly with these companies, then it would be much better for these things to happen in the United States."

A source told FOX Business that Atkins recently expressed a desire to have Republican Commissioner Hester Peirce, also known as "Crypto Mom," lead crypto policy alongside her Republican colleague Mark Uyeda. Peirce wants to lead an internal crypto working group that would reassess the agency's approach to digital assets and engage in an open dialogue with the industry. Peirce's term ends in June, and it is unclear whether she wants to be nominated for the position again. Uyeda's term ends in 2028.

When Trump takes office in January, he will be able to nominate at least three new commissioners, including two Republican candidates and at least one non-Republican, because SEC rules limit any one party to three of the five commission seats. This means that, just as he did with the Supreme Court, Trump will be able to choose SEC commissioners at will, tilting the commission toward a pro-business approach and lighter regulation.

Chris Giancarlo, who served as CFTC Chairman during Trump's first term, said: "President-elect Trump has made an excellent choice for SEC Chairman. Atkins is known for his professional integrity and wisdom. As a former Commissioner, he has a wealth of knowledge and respect for the agency. After years of regulatory hostility, he will encourage technological innovation, cryptocurrencies, and digital finance. I am confident that he will restore the SEC to its historic role in promoting capital formation and U.S. economic growth."