On Monday, Democratic Senator Elizabeth Warren, Ranking Member of the Senate Committee on Banking, revealed she sent a 34-page letter to President Trump’s SEC chairman nominee, Paul Atkins.
In the letter, the crypto-critic lawmaker expressed her worry about Atkins’ prospective approach to crypto regulation, considering that “the decisions you make as Chair will have significant implications for the long-term health of American commerce and economic growth.”
Senator Warren highlighted Atkins’ extensive experience in financial services and capital markets but raised concerns regarding his record as a regulator and his advisory role during “historic failures of the financial system.” She elaborated on Atkins’ positions as an SEC Commissioner during the 2008 financial crisis and his advisory capacity to the now-collapsed crypto platform, FTX, in 2022, as substantial reasons to question his judgment and “ability to serve as an effective SEC Chair” if confirmed.
In addition to advising a number of crypto companies and boards, you have served as an advisor to the Chamber of Digital Commerce since 2020 and to FTX for the 10 months leading up to its collapse in November 2022. Your deep involvement with FTX and other high-paying crypto clients raises questions about your approach to crypto regulation—and concerns about the extent of your knowledge of FTX’s illegal activities.
The Senator also voiced her concerns over Atkins’ advocacy for “weaker” SEC rules. Consequently, she inquired about several industry-related issues, including his views on the SEC’s role in regulating the crypto spot market and how the Howey test applies to tokens. Also emphasized was the recent dismissal of several legal actions against major crypto firms such as Coinbase, Kraken, Ripple, Robinhood, Gemini, and Yuga Labs.
Trump Administration’s Potential ‘Conflicts Of Interest’
Concerning possible conflicts of interest, Warren questioned whether Atkins was consulted by acting chair Mark Uyeda or any other SEC staff regarding the Commission’s request for a stay in the Binance case and the halt of Tron founder Justin Sun’s lawsuit.
You also have significant potential conflicts of interest through your work on behalf of corporate interests—and a long record of advocating for weaker protections for investors and weaker rules to prevent wrongdoing by giant corporations.
The Senator referred to rumors surrounding alleged talks between the Trump family and Binance’s US arm concerning a stake acquisition, a claim which has been denied by both parties. Moreover, she probed potential conflicts of interest related to Trump’s crypto ventures, such as the TRUMP memecoin and World Liberty Financial (WLFI).
Earlier this month, Warren sent a similar letter to the White House’s Crypto and AI Czar, David Sacks, requesting clarity on various issues, including the timeline of Sacks’ divestment of his digital asset holdings.
According to her recent letter, Atkins should be prepared to address these questions during the Banking Committee hearing scheduled for March 27, as the responses to the inquiries and his testimony will be crucial in assessing his potential leadership of the SEC.
