(Bloomberg) — Paul Atkins, a veteran financial regulator and fixture of Washington's conservative financial circles, is President-elect Donald Trump's pick to lead and possibly overhaul the U.S. Securities and Exchange Commission.
Trump selected Atkins to replace outgoing Chairman Gary Gensler, according to a statement posted on Social Truth. Gensler has said he plans to launch on January 20.
“Paul is a proven leader for common sense regulation. He believes in the promise of robust and innovative capital markets that respond to the needs of investors and provide capital to make our economy the best in the world. He also recognizes that digital assets and other innovations are essential to making America greater than ever before,” Trump said in a statement Wednesday.
By choosing the former Republican SEC commissioner, Trump is using one of the GOP's most influential financial regulators to oversee Wall Street. If confirmed, Atkins is expected to focus on reducing regulations and imposing lower fines for violations.
“He is the godfather of conservative capital markets ideology and the mentor of a generation of policymakers,” said Tyler Gellasch, president of the Sound Markets Association, a trade group made up of stock exchanges, institutional investors and other financial firms. “It's hard to imagine a leader more connected and better able to shrink the SEC and its regulations.”
Atkins founded Patomak Global Partners, a consulting firm for major financial industry clients, after he left the SEC at the end of the George W. Bush administration. Patomak has since risen to become one of the preeminent sounding boards for banks, trading firms, fintechs and other financial companies seeking guidance on how to influence and respond to Washington. decrees and investigations.
The Atkins Story
Both at the SEC and in the private sector, Atkins has been involved in some of the biggest and most controversial financial policy issues, such as the influence of proxy advisors on corporate boards and EXPENCES of “discovery overload”, as well as policies to encourage capital formation. He has testified before Congress on ways to restructure the agency's operations and reduce what some industry participants consider duplicative or overly burdensome regulations. More recently, Atkins has been a strong proponent of digital assets and fintech companies.
As SEC commissioner, Atkins spoke out against high fines imposed on companies, saying they ultimately hurt shareholders. He also emphasized the SEC's mandate to not only protect investors, but to increase competition and efficiency in markets. The regulator “must not price those investors out of our markets through burdensome regulations or eat away at the fruits of their investment through meaningless mandates,” Atkins said in a 2007 speech.
He also criticized parts of the sweeping reforms included in the Dodd-Frank legislation that was passed in the wake of the 2008 financial crisis. He testified before a congressional committee about problems with some large banks being designated as systemically important financial institutions and ” grab bag” of the public company disclosure provisions contained in the law.
Atkins' leadership is likely to be in sharp contrast to Gensler, who pushed one of the SEC's most ambitious agendas in recent memory. However, some of Gensler's regulations succeeded hindered by legal challenges.
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The SEC under Gensler also imposed large fines for regulatory misconduct, with record fines for financial firms that use informal communications devices to conduct business. Business groups, especially the crypto industry, often complained to the SEC under the regulation adopted by Gensler from enforcement instead of first creating clear rules of the road.