SEC's Crypto Push and Dropped Cases Draw Scrutiny Over Wall Street Ties

Elizabeth Warren has intensified her scrutiny of SEC Chair Paul Atkins, accusing him of enabling “open corruption” through his role in dismissing a case tied to a former client. The controversy centers on Devon Archer, a businessman convicted of securities fraud in 2018 and later pardoned by President Donald Trump. According to a September 2025 report, Atkins served as an expert witness for Archer’s legal defense in 2018, earning $1,450 per hour. An SEC spokesperson confirmed Atkins recused himself from the agency’s decision to drop the civil case against Archer, though critics argue the move raises ethical concerns.

Warren’s allegations highlight broader tensions over the SEC’s shifting priorities under Atkins, a former Wall Street consultant with deep ties to financial institutions. The senator criticized Atkins for “spending his career advising big banks and giant corporations,” suggesting the SEC’s recent actions against crypto firms like OpenSea, Ripple, and Coinbase reflect a pattern of favoring industry interests. The SEC has dismissed multiple high-profile cases this year, including a 2023 lawsuit against Coinbase, which critics view as a retreat from enforcement in favor of regulatory collaboration.

The agency’s strategic pivot is evident in its formation of a Crypto Task Force in January 2025, tasked with developing a “sensible regulatory path” for digital assets. However, Warren and other lawmakers have raised alarms about potential conflicts of interest, citing Atkins’ past work with entities including Patomak Global Partners, a consultancy that served major banks and crypto firms. Financial disclosures reveal Atkins earned $3.7 million from Patomak between 2023 and 2025, while the firm’s recent $25–50 million sale remains shrouded in secrecy.

The dropped case against Archer further complicates the SEC’s credibility. While the agency maintains Atkins’ recusal was appropriate, Warren’s office has demanded transparency about Patomak’s clients and Atkins’ undisclosed conflicts. The case, which involved Archer’s role in a $60 million tribal bond fraud, was initially dismissed in 2016 but reinstated after an appeals court overturned a lower court’s ruling. Trump’s subsequent pardon of Archer and the SEC’s decision to abandon the civil action have drawn accusations of regulatory favoritism.

Political and legal battles over the SEC’s direction are intensifying. The Trump administration’s pro-crypto agenda, including a ban on central bank digital currencies and support for stablecoin innovation, has aligned with Atkins’ advocacy for market-friendly policies. Yet, critics warn that the SEC’s reduced enforcement posture risks eroding investor protections. With key hearings and rulemaking initiatives underway, the agency’s ability to balance innovation with accountability will remain a focal point in the coming months.