Sen. Elizabeth Warren (D-MA) confronted Paul Atkins, President Donald Trump’s nominee for SEC chair, over his financial ties and potential conflicts of interest during his confirmation hearing before the Senate Banking Committee. Atkins, a former SEC commissioner, is set to sell his stake in Patomak Global Partners, a consulting firm he founded that has worked with major financial institutions and crypto firms, including the collapsed exchange FTX. Warren pressed him to disclose the buyers and the price to ensure the sale was not a way for people to buy influence. When Atkins stated that he had followed White House ethics guidance, Warren responded, “Some people might call that a pre-bribe.”
Atkins has pledged to take a different approach from former SEC Chair Gary Gensler, under whom the regulator pursued aggressive enforcement actions against crypto firms. He described the current regulatory framework as “ambiguous and nonexistent” and promised to establish a clearer approach. Acting SEC Chair Mark Uyeda has already moved away from Gensler’s stance, focusing on guidance rather than enforcement. Republicans and some former SEC officials have defended Atkins, arguing that his industry experience will benefit the SEC. Sen. Bill Hagerty (R-TN), a longtime acquaintance of Atkins, said he has “an unmatched understanding of financial markets and their regulatory challenges.”
Warren has also raised concerns over a stablecoin bill in Congress, accusing Trump of using it to benefit himself and Elon Musk. On Wednesday, she criticized Trump’s decentralized finance project, World Liberty Financial, which launched its own stablecoin, USD1, on Ethereum and Binance’s BNB Chain. She claimed the legislation was designed to “enrich” Trump and Musk at the expense of financial stability.
During the hearing, Warren repeatedly cited FTX’s founder, arguing that Atkins’s ties to the crypto industry reflect a pattern of financial regulators favoring corporate interests. “Mr. Atkins has spent almost his entire career helping billionaire CEOs like Sam Bankman-Fried, who committed one of the biggest financial frauds in U.S. history,” she said, also criticizing Atkins for failing to foresee the 2008 financial crisis. She questioned whether he would be able to hold Wall Street accountable.
Atkins’s nomination is expected to clear the Senate, but the controversy highlights ongoing political divisions over financial regulation and the influence of the crypto industry. Earlier this week, Warren sent Atkins a 34-page letter asking for more details on how he would handle conflicts of interest. She said his team responded only minutes before the hearing with a brief reply, calling it “deeply concerning.”
Atkins has promised to recuse himself from matters involving Patomak for one year if confirmed. His supporters argue that his regulatory approach will provide much-needed clarity, while critics like Warren warn that his industry ties could lead to weak oversight.