Coinbase Backs Atkins for SEC Chair, Seeks Crypto Clarity

Paul Atkins, the nominee for the next chairman of the U.S. Securities and Exchange Commission (SEC), has received strong support from Paul Grewal, the Chief Legal Officer of Coinbase. Grewal attended a Senate Banking Committee hearing on Atkins’ confirmation and emphasized the importance of Atkins’ leadership in bringing clarity to the regulatory landscape for digital assets. Grewal tweeted his appreciation for Atkins, arguing that policy certainty is vital for the improvement and progression of the new economy in the United States. According to Grewal, greater clarity on the regulation of cryptocurrencies would create new markets, protect consumers, and place the nation at the forefront of technology and finance.

During the hearing, Atkins highlighted the need for clear rules and approaches to digital assets, which aligns with Coinbase’s stance. He revealed that under his leadership, digital assets would be prioritized, as the current legal frameworks are hindering development. Atkins stated that unclear, overly politicized, complicated, and burdensome regulations are stifling capital formation. He also addressed the issue of debanking alongside Comptroller of the Currency nominee Jonathan Gould, committing to ending this undemocratic practice. Atkins and Gould both emphasized the need for the SEC to get “back to basics.”

Coinbase has been urging regulators to provide more clarity on their regulations, especially after recent regulatory endeavors. Grewal commented that getting workable rules and regulatory clarity for crypto will unlock U.S.-based innovation. This sentiment is shared by many in the industry who see Atkins as a favorable alternative to the current SEC leadership under Gary Gensler, which has been criticized for its aggressive regulation of cryptocurrency firms. Critics of Gensler’s approach see Atkins as someone who will focus more on capital formation and investment choice, providing a clearer path for companies in the digital asset sector to operate with fewer regulatory hurdles.

Despite the support from industry professionals like Grewal, Atkins’ nomination has also drawn opposition, particularly from the Democratic Party. Senator Elizabeth Warren raised concerns about potential conflicts of interest due to Atkins’ interactions with Wall Street and digital asset firms. Warren cited Atkins’ financial experience and contacts, noting that his career has been dedicated to assisting billionaires like Sam Bankman-Fried. She also accused Atkins of downplaying the risks leading up to the 2008 financial crisis, although Atkins defended his past record by attributing the crisis to the subprime mortgage market and the role of Fannie Mae and Freddie Mac. These criticisms are unlikely to prevent his confirmation by the GOP-controlled Senate.

Atkins’ financial background has also raised questions about potential conflicts of interest. His stake in Patomak Global Partners, a consulting firm he founded, has come under scrutiny. According to government filings, Atkins’ stake in the firm is worth at least $25 million, while his total net worth is estimated at over $327 million. In response to these concerns, Atkins has committed to divesting from Patomak and other holdings within 90 days of his confirmation. He also pledged to meet or exceed the same ethical standards applied to previous SEC nominees. However, Senator Warren has pressed Atkins to provide more details about who will purchase his stake and whether they will gain any undue access to his potential position as SEC chair.