Senator Warren Questions Paul Atkins’ ties to FTX

Senator Elizabeth Warren has ramped up her criticisms of the U.S. Securities and Exchange Commission (SEC) by raising serious doubts about Paul Atkins, President Trump’s pick for SEC chair. Atkins, a former commissioner at the SEC, has built a consulting career with deep links to the crypto sector, including to the collapsed exchange FTX. Warren’s 34-page letter blasts Atkins’ record on deregulation, urging transparency regarding his ties to industry players and his stance on key investor protections.

A Long History of Deregulation

Warren’s letter underscores Atkins’ past opposition to critical reforms introduced under Dodd-Frank. She highlights his contributions to Project 2025, a policy agenda advocating the elimination of regulatory oversight bodies like the PCAOB (Public Company Accounting Oversight Board) and FINRA (Financial Industry Regulatory Authority). According to Warren, installing Atkins at the helm of the SEC risks a return to the “pre-crisis deregulation” era that could destabilize markets and damage public trust.

Key Questions Raised

Warren demands that Atkins clarify how he would handle crypto fraud cases if confirmed as SEC chair. She questions whether Atkins would continue the agency’s crackdown on bad actors and remain committed to enforcing new short sale disclosure rules mandated by Dodd-Frank. Additionally, she points to Atkins’ previous leniency toward corporate misbehavior, including his resistance to punishing executive stock option abuses.

Controversial Ties to FTX

The senator strongly critiques Atkins’ advisory role at FTX, the failed crypto exchange that left billions in user funds missing. Warren expresses concern that Atkins’ association raises “serious doubts about his judgment and ability to police financial misconduct.” FTX’s downfall has already tarnished the credibility of several figures in crypto, and Warren suggests that Atkins’ closeness to the troubled firm merits further scrutiny.

Patomak Global Partners

Warren also zeroes in on Atkins’ firm, Patomak Global Partners, which charges fees as high as $1,300 per hour to help clients facing SEC enforcement. She demands disclosure of the firm’s client list, asking whether Atkins would step aside from rulemaking or investigative matters involving those clients. The senator is especially vocal about whether Atkins, if confirmed, would be too conflicted to fairly regulate the crypto industry.

Concerns Over Political Influence

Another flashpoint is potential political meddling in SEC actions. Warren cites reports of dropped cases against major crypto projects right after top executives made substantial donations. She wonders if Atkins would maintain the SEC’s independence or yield to political pressure, especially in high-profile cases linked to Trump or his allies. This worry extends to the dropped lawsuit against Ripple, coming just days after its CEO attended a White House event and contributed to an inaugural fund.

Pre-Crisis Echoes

Atkins’ skepticism toward the SEC’s climate risk disclosure rules and broader enforcement powers has also alarmed Warren. She asserts that returning to a “light-touch” approach is a recipe for another financial debacle, echoing the conditions that preceded the 2008 crisis. In her letter, Warren warns that “the American people deserve clear answers” about Atkins’ plans on corporate accountability, crypto oversight, and safeguarding investors from fraud.

This showdown between Warren and Paul Atkins comes at a critical juncture for the SEC. While Atkins’ supporters see his experience as a way to streamline regulations, critics fear he could unravel essential protections. As the confirmation process looms, all eyes will be on whether Atkins can demonstrate the independence and strict oversight required to manage a market shaken by FTX, growing crypto volatility, and persistent deregulation threats.