bravenewcoin.com
The move has further heightened optimism within the cryptocurrency industry, particularly for Ripple Labs, as it battles the SEC in a high-profile lawsuit.
Atkins, who served as an SEC commissioner under President George W. Bush, is widely respected in conservative financial circles. His appointment comes at a critical juncture for the SEC, which is currently embroiled in a legal dispute with Ripple Labs over allegations of securities law violations related to the company’s issuance of XRP.
In July 2023, U.S. District Judge Analisa Torres ruled that XRP is not a security when sold to retail investors but does qualify as a security in institutional sales. The SEC initially sought a $2 billion penalty against Ripple but was ultimately granted a $125 million fine. The agency appealed the decision, arguing that it contradicted Supreme Court rulings, but Judge Torres rejected the appeal in October 2024, citing insufficient grounds.
The appointment of Atkins has prompted speculation that the SEC might dismiss the case against Ripple altogether. Chris Giancarlo, former chairman of the Commodity Futures Trading Commission (CFTC) and a contender for Trump’s “crypto czar,” expressed optimism about such an outcome.
“I think they should and will [dismiss the case],” Giancarlo said in a recent interview with Fox Business. “I would bet they would. I would recommend that it’s time for regulatory agencies to drop a lot of these cases where they’ve lost at the trial court.”
Legal experts suggest that Atkins could steer the SEC toward a more crypto-friendly regulatory stance. Attorney Jeremy Hogan noted that while Atkins is likely to bring stability to the SEC, he may not enact sweeping changes as quickly as some crypto advocates hope.
“Atkins is expected to take a more measured and incremental approach rather than drive disruptive change,” Hogan said.
However, not all reactions have been positive. Some in the financial sector believe Atkins’ appointment signals a return to traditional regulatory practices that may not favor the burgeoning digital assets market.
The SEC’s aggressive enforcement actions under Gensler have been a point of contention within the crypto community. The agency’s wide-ranging campaign against digital asset companies has often been criticized as unfair and lacking clear regulatory guidelines.
Trump’s administration is expected to roll back the SEC’s oversight of the $3 trillion digital assets market in favor of the CFTC, which is perceived to have a lighter regulatory touch.
Paul Atkins’ stance on cryptocurrencies aligns with Trump’s promises to make the United States a “world capital” for crypto. Atkins has been a proactive supporter of the digital asset industry, co-chairing the Token Alliance at the Digital Chamber of Commerce since 2017.
However, reports have emerged that Atkins is hesitant to accept the SEC chair position. According to sources familiar with his thinking, Atkins believes the SEC was mismanaged under Gensler and that leading a turnaround would require significant effort.
“Taking up the SEC chair role would require him to resign from his business interests, which he may only do once his firm is well-positioned to operate without him,” one source said.
If Atkins declines the role, other candidates under consideration include crypto attorney Teresa Goody Guillén, former acting Comptroller of the Currency Brian Brooks, and former SEC general counsel Robert Stebbins.