Paul Atkins, left, talks to then SEC Chair Christopher Cox during a House Financial Services Committee hearing on Capitol Hill in Washington, D.C., on June 26, 2007. Atkins was then an SEC commissioner, and he has now been picked by President-elect Trump as the next head of the agency.

Paul Atkins, left, talks to then SEC Chair Christopher Cox during a House Financial Services Committee hearing on Capitol Hill in Washington, D.C., on June 26, 2007. Atkins was then an SEC commissioner, and he has now been picked by President-elect Trump as the next head of the agency. / Getty Images North America

President-elect Donald Trump said he has picked former Securities and Exchange Commissioner Paul Atkins to head the agency, according to a post he made on Truth Social on Wednesday.

Atkins served as an SEC commissioner from 2002 to 2008 and is known for his pro-business stance. He's now the CEO of consulting firm Patomak Global Partners, which has clients across the financial and cryptocurrency industries.

Atkins is also known as a strong backer of cryptocurrencies, and could help shape key regulations for an industry Trump has avidly courted, should he be confirmed by the Senate.

"Paul is a proven leader for common sense regulations," Trump said in his Truth Social post. "He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before."

Current SEC Chair Gary Gensler has announced he will step down on January 20, when Trump will be inaugurated. Gensler had antagonized a lot of Wall Street, as well as the crypto industry, because of the agency's aggressive enforcement actions under his tenure.

Trump's choice of Atkins has raised concerns among some consumer groups that are worried Atkins will adopt a far looser regulatory approach as the new Wall Street cop.

In a statement, Dennis Kelleher, the President and CEO of Better Markets, called Atkins "smart, experienced, and capable."

But Kelleher also warned of Atkins' close ties to the business sector. "Unfortunately, he is also a deregulation zealot and industry cheerleader who, as a Commissioner at the SEC from 2002-2008, supported deregulation that contributed to the devastating 2008 crash," he added, referring to the global financial crisis.

A new dawn for crypto?

Atkins had been seen as one of the leading contenders to replace Gensler, sparking excitement across the crypto industry.

Prices of cryptocurrencies have surged since Trump's election, with bitcoin almost surpassing $100,000 for the first time ever in late November, before pulling back.

Just a few years ago, Trump had called cryptocurrencies a "scam" and told Fox Business they were "potentially a disaster waiting to happen."

But he has changed his mind. During this year's election campaign, Trump promised to make to make the U.S. "the crypto capital of the planet" by bringing in friendly regulators and ending the types of tough enforcement actions taken against the sector under President Biden. His family also has financial interests in a crypto-related company called World Liberty Financial.

Gary Gensler, the current SEC Chair, speaks during a meeting of financial regulators at the Treasury Department in Washington, DC on May 10, 2024. Gensler, who said he'll step down on Jan. 20, had antagonized the crypto industry with aggressive enforcement actions.

Gary Gensler, the current SEC Chair, speaks during a meeting of financial regulators at the Treasury Department in Washington, DC on May 10, 2024. Gensler, who said he'll step down on Jan. 20, had antagonized the crypto industry with aggressive enforcement actions. / AFP

His selection of Atkins, a well-known crypto backer, could now help propel the industry further.

Atkins has expressed reservations about the enforcement actions taken by the SEC against the domestic crypto industry, saying it could drive the industry abroad instead of developing it in the U.S.

Crypto critics are alarmed

Trump's support of the crypto industry has alarmed critics of the sector.

Cryptocurrencies have a history of intense volatility and the sector has been racked by frauds and scams. The currencies are also believed to be widely used for illegal activities, such as supporting the drug trade and terrorism.

The industry has also seen spectacular implosions. FTX, once the world's biggest crypto exchange, collapsed in 2022. Its founder and CEO, Sam Bankman-Fried, was convicted of fraud for stealing billions in customers' money. Bankman-Fried was later sentenced to 25 years in prison.

In addition to the appointment of a crypto-friendly SEC head, the industry could also benefit from a Republican Congress. The GOP is set to control both the House and the Senate with narrow majorities. The makeup of the incoming Congress was shaped in part by the millions of dollars the industry spent to help defeat lawmakers seen as crypto skeptics, like Democratic Ohio Senator Sherrod Brown, the current Chair of the Senate Banking Committee, who lost his reelection bid in November.