(Bloomberg) -- Paul Atkins, a veteran financial regulator and a fixture in Washington’s conservative financial circles, is President-elect Donald Trump’s choice to lead and possibly overhaul the US Securities and Exchange Commission.
Trump picked Atkins to replace outgoing Chair Gary Gensler, according to a statement posted on Truth Social. Gensler has said he plans to depart on Jan. 20.
“Paul is a proven leader for common sense regulations. 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,” Trump said in the statement Wednesday.
By selecting the former Republican SEC commissioner, Trump is tapping one of the most influential GOP financial regulation insiders to oversee Wall Street. If confirmed, Atkins is expected to focus on whittling away at regulations and levying lower penalties for violations.
“He’s the godfather of conservative capital markets ideology and mentor to a generation of policymakers,” said Tyler Gellasch, president of the Healthy Markets Association, a trade group comprised of exchanges, institutional investors and other financial firms. “It’s hard to imagine a more connected and capable leader to scale back the SEC and its rules.”
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 most prominent sounding boards for banks, trading firms, fintechs and other financial companies seeking guidance on how to influence and respond to Washington’s edicts and investigations.
Atkins’ History
At both the SEC and in the private sector, Atkins has been involved in some of the biggest and most contentious financial policy issues, such as the influence of proxy advisers on corporate boards and the costs of “disclosure 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 an SEC commissioner, Atkins spoke out against high penalties levied on companies, saying they ultimately hurt shareholders. He also called out the SEC’s mandate to not only protect investors but to increase competition and efficiency in the markets. The regulator “must not price those very investors out of our markets through burdensome regulations or eat up the fruits of their investments through nonsensical mandates,” Atkins said in a 2007 speech.
He also criticized parts of the sweeping reforms contained in the Dodd-Frank legislation that was enacted in the wake of the 2008 financial crisis. He testified before a congressional committee about problems with certain big banks getting designated as systemically important financial institutions and the “grab bag” of public company disclosure provisions contained in the law.
Atkins’ leadership would likely be in sharp contrast with Gensler, who rolled out one of the most ambitious SEC agendas in recent memory. Some of Gensler’s marquee rule-makings, however, got stymied by legal challenges.
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The SEC under Gensler also levied big fines for regulatory missteps, with record penalties for financial firms using unofficial communication devices to conduct business. Business groups, especially the crypto industry, often complained the SEC under Gensler enacted regulation by enforcement instead of first creating clear rules of the road.
