- Paul Atkins has been named the new SEC Chair by President-elect Donald J. Trump, signaling a potential shift in crypto regulation.
- Gary Gensler’s tenure was marked by aggressive enforcement actions, including lawsuits against Ripple Labs over XRP.
- Atkins, known for his pro-crypto stance, is expected to advocate for clearer rules and reduced regulatory burdens, benefiting the digital asset market.
The crypto world just got huge news. This afternoon, President-elect Donald J. Trump announced Paul Atkins as the next Securities and Exchange Commission Chair.
Gary Gensler, the soon-to-be former SEC Chair gained notoriety over the last 4 years for his recurring battles with altcoins, arguing that currencies like XRP and Ethereum should be classified as securities under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Several cryptocurrency firms were sued during that time, most notably Ripple Labs, the company responsible for XRP, which was sued by the SEC — accused of promoting the sales of unregistered securities.
For nearly 4 years Ripple fought tooth and nail to defend the argument that its currency was not a security. While the case is still ongoing, several small victories that went in the favor of the crypto firm suggest that Ripple has a good chance of winning the lawsuit.
The replacement in the SEC leadership is undoubtedly a big deal for crypto. In fact, one could argue that November’s crypto rally was largely fueled not only by Trump’s win—but also by the likelihood that with the Republican in office—regulators will better cooperate with digital assets and that the negative pressure from the constant legal attacks from Gensler.
Fox Business journalist Eleanor Terret recently announced on Twitter that Trump is set to announce a new SEC Chair. The prediction turned materialized a couple of hours later.
Former SEC Commissioner under the Bush administration, Paul Atkins is known for his pro-crypto stance, and over the years has been a huge supporter of blockchain innovation and more regulatory clarity toward crypto.
Aside from Atkins—Dan Gallagher, Mark Uyeda, Robert Stebbins, and Heath Tarbert were also contenders for the SEC Chair position. While each of them brings significant regulatory and legal experience, Paul Atkins is still the crypto sector’s preferred choice.
How Does Atkins Differ From Gensler?
The market can expect a less combative SEC in 2025, as Paul Atkins’ stance on crypto differs significantly from Gary Gensler. During Gary Gensler’s run, he continuously enforced existing securities law, which resulted in head-on crashes with companies like Ripple Labs.
In all likelihood, Atkins will be more open to debate and will advocate for a clearer regulatory framework. His support for less regulatory burdens and commitment to Web3 innovation will likely have a drastic impact on the crypto and fintech sectors.
