President-elect Donald Trump has nominated Paul Atkins as the new chair of the Securities and Exchange Commission (SEC), signalling a shift toward pro-business policies and looser regulation, particularly in the fast-evolving cryptocurrency market. A former SEC commissioner under President George W. Bush, Atkins is known for his conservative stance on financial regulation and his support for digital innovation.

Crypto Industry Celebrates Appointment

The crypto sector welcomed Atkins’s appointment, hailing it as a move toward more lenient oversight. His nomination follows Trump’s campaign promise to end the SEC’s crackdown on cryptocurrencies under current chair Gary Gensler. Atkins, 66, has been an active advocate for the crypto space, co-chairing initiatives like the Token Alliance and advising firms like Securitize, a digital token enterprise.

“Paul is a proven leader for common-sense regulations,” Trump said, emphasising the role of digital assets in boosting America’s economic future.

Regulatory Rollbacks on the Horizon

Atkins is expected to reverse many of Gensler’s initiatives, including the push to classify most crypto assets as securities. The SEC’s lawsuits against major players like Coinbase could be dropped or settled under the new leadership. Critics of the current approach argue that crypto assets should be treated as commodities or currencies, limiting SEC jurisdiction.

Republicans in Congress are also preparing legislation to strip the SEC of most crypto regulatory powers, complementing the anticipated policy shift under Atkins.

Changing the SEC’s Focus

Atkins’s tenure may prioritise technological innovation and scaling back regulatory enforcement. This aligns with Republican goals to reduce the SEC’s influence in areas like climate change reporting and diversity mandates. The SEC’s recent fiscal report showed a 26% drop in enforcement actions, signalling a quieter regulatory landscape even before the leadership change.

With Democrats losing key commissioners, the SEC’s new majority under Atkins could reshape the agency’s priorities, creating a friendlier environment for crypto enterprises.

The move underscores Trump’s commitment to fostering a pro-innovation economy while appeasing a crypto industry eager for regulatory relief.