American businessman Paul Atkins has been officially sworn in as the 34th chair of the U.S. Securities and Exchange Commission (SEC). These are the top facts about Wall Street’s new top cop.
Fact 1. Opposing the post-Enron Sarbanes–Oxley Act
Atkins, who was appointed as an SEC commissioner by former President George W. Bush back in 2002, strongly opposed the bipartisan Sarbanes–Oxley Act, which was passed to improve corporate auditing standards and financial reporting following major scandals such as Enron.
The libertarian was speaking out against the Act’s sweeping regulatory provisions.
Atkins has also opposed significant penalties for corporate wrongdoing.
Fact 2. Being blamed for contributing to the GFC
The deregulatory environment created by the SEC during Atkins’s tenure was also partially blamed for laying the groundwork for the global financial crisis (GFC).
The 2004 Net Capital Rule amendment allowed investment banks to significantly increase leverage, thus significantly increasing the level of risk.
As reported by U.Today, this point was mentioned by anti-crypto Massachusetts Senator Elizabeth Warren during a recent confirmation hearing.
Fact 3. Founding Patomak Global Partners
After parting ways with the SEC in 2008, Atkins founded consulting firm Potomak Global Partners. The firm’s clients include financial services firms, asset managers, insurance companies, and so on.
After being chosen to spearhead FTX, Atkins stated that he would divest his stake.
Fact 4. A big crypto supporter
Atkins is known as a major supporter of cryptocurrency. In 2017, he became the co-chair of Token Alliance, a well-known crypto lobbying group. His disclosures have also revealed significant crypto holdings.
His nomination was widely celebrated within the crypto industry, with top executives expressing their support.
Earlier this month, he told the Senate Banking Committee that crypto regulation would be the top priority.
Fact 5. Serving as an FTX advisor
Atkins has also served as an advisor to the now-defunct FTX exchange, which went belly-up in late 2022. Patomak was lobbying for the odious crypto platform alongside former CFTC Commissioner Mark Wetjen and some other prominent names. The firm signed on as an advisor in early 2022.
