Nikolas Sargeant
Senator Elizabeth Warren is raising serious concerns about Paul Atkins, the nominee for chair of the Securities and Exchange Commission (SEC), ahead of his confirmation hearing on March 27. Warren's letter to Atkins, sent ahead of the hearing, highlights his connections to the now-collapsed crypto exchange FTX, where he served as an advisor for ten months prior to its downfall in November 2022. She questioned whether Atkins had overlooked warning signs related to FTX’s massive misuse of customer funds and its eventual exposure as a major fraud operation.
Warren also criticized Atkins for his vocal opposition to stringent crypto regulations, questioning whether his stance could influence the SEC’s approach to future regulatory measures. She pointed out that, after the collapse of FTX, Atkins blamed the US regulatory framework for being unfriendly to crypto innovation rather than acknowledging the exchange’s failure. This rhetoric, she argues, raises red flags about his ability to fairly regulate the crypto industry, especially given his past connections to crypto entities like the Chamber of Digital Commerce.
In addition to his involvement with FTX, Warren has questioned Atkins’ broader ties to the crypto industry. She highlighted his advisory role with other crypto organizations, asking how these affiliations could influence his approach to securities laws at the SEC. Warren specifically asked Atkins to clarify how he would ensure that insider trading and market manipulation laws are enforced fairly, particularly when it comes to administration officials who have financial ties to crypto ventures.
As part of her inquiry, Warren has also pressed Atkins to disclose details about his compensation from FTX, including whether any of it has been clawed back during the ongoing bankruptcy proceedings. She emphasized the need for transparency regarding his financial dealings with FTX, especially in light of the company’s deep ties to other firms, like Alameda Research, and questions about potential comingling of customer funds.
Warren holds crypto accountable
Senator Warren is emerging as an important voice in Washington D.C. that is seeking to hold cryptocurrency accountable. For example, she came out against the TRUMP coin. She exposed it as a profit plot that did not seek to add any use value to the market. Additionally, she challenged Lutnick’s nomination to Commerce Secretary based on his association with stablecoin issuer Tether.
