Paul Atkins Easily Navigates SEC Hearing Amidst Looming New Test and Oversight of Trump’s Crypto Empire
The Guidance
SEC chair nominee sailed through Senate confirmation hearing. Trump family’s crypto expansion poses unprecedented test. The end of the crypto crackdown ushers in a new era.
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Paul Atkins’ confirmation hearing was uneventful.
That’s positive for the crypto industry.
Atkins, chosen by President Donald Trump to lead the US Securities and Exchange Commission, faced few crypto-related questions from the Senate Banking Committee, according to Aleks Gilbert’s report.
Instead, Democratic senators focused on questioning Atkins, a former SEC commissioner, about his actions before the 2008 global financial crisis.
This came as a surprise.
Conflicts of interest
Leading up to the hearing, Senator Elizabeth Warren, the top Democrat on the committee and a vocal critic of crypto, posed various questions to Atkins.
Among them was how Atkins planned to address the expanding crypto business of the Trump family, as reported by Eric Johansson.
Warren wrote in a letter to Atkins, “Your financial connections to the industries you will regulate raise concerns about your ability to avoid conflicts of interest as a regulator.”
Earlier in the week, World Liberty Financial, owned by the Trump family, announced plans to launch a dollar-backed stablecoin, as noted by Tim Craig.
Similarly, Trump Media & Technology Group revealed intentions to introduce digital asset exchange-traded funds in a partnership with Crypto.com, according to Osato Avan-Namayo.
Trump’s ventures
Two days later, Crypto.com confirmed that the SEC had closed its investigation into the company, based in Singapore.
It is hard to ignore the perception that the SEC is resolving cases in conjunction with the Trump family’s crypto expansion.
While crypto ventures welcome the end of Gary Gensler’s crackdown, there is a risk of further tarnishing the industry’s reputation.
Trump and his sons are rapidly integrating crypto into their family business, alongside real estate.
Their actions coincide with regulators and lawmakers developing regulations for the crypto industry, which is unprecedented.
Additionally, Trump has pardoned several individuals in the crypto industry to gain favor, starting with Ross Ulbricht, the founder of Silk Road, and recently pardoning Arthur Hayes and co-founders of BitMEX.
Regulatory clarity
From a regulatory standpoint, it appears that the crypto industry is receiving preferential treatment from this administration.
However, Trump’s conflicts of interest could deter institutional and retail investors who were beginning to embrace crypto.
Despite the regulatory clarity, the industry’s efforts to become mainstream face challenges.
Edward Robinson is the story editor for DL News. Contact the author at ed@dlnews.com.
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