Senator Warren challenges SEC nominee Paul Atkins over FTX ties and deregulation risks

Senator Elizabeth Warren has demanded answers from SEC chair nominee Paul Atkins over his history of light-touch regulation, ties to the failed crypto exchange FTX, and involvement in efforts to dismantle key investor protections.

In a sharply worded 34-page letter, Senator Warren questioned whether Atkins, a former SEC commissioner and longtime industry consultant, could impartially lead the agency at a time of market volatility and declining investor confidence.

She cited his advisory role at FTX prior to its collapse, his opposition to key Dodd-Frank reforms, and his contributions to Project 2025 — a policy blueprint that proposes slashing SEC enforcement powers and eliminating oversight bodies like the PCAOB and FINRA.

Warren issued a similar letter to the White House crypto Czar David Sacks earlier this month, raising concerns over whether his advisory role has benefited him financially.

Crypto, conflicts, and political interference

Senator Warren noted that Atkins’ firm, Patomak Global Partners, has advised clients facing SEC enforcement while charging fees as high as $1,300 per hour. She demanded full disclosure of Patomak’s clients and asked whether Atkins would recuse himself from rulemaking or investigations involving them.

Warren also criticized Atkins for advising FTX in the months before its collapse, saying his role with the now-defunct crypto exchange raised serious concerns about his judgment and ability to police financial misconduct.

She further raised concerns over his advisory work for the Chamber of Digital Commerce and whether his deep ties to the crypto industry could influence enforcement decisions.

The letter follows a wave of dropped SEC cases, including the agency’s high-profile lawsuit against Ripple, just days after CEO Brad Garlinghouse reportedly attended a White House event and donated $5 million to President Donald Trump’s inaugural fund.

Return to deregulation

Senator Warren asked whether Atkins would continue the SEC’s crackdown on crypto fraud, enforce new short sale disclosure rules mandated by Dodd-Frank, and resist political interference — particularly in cases involving firms linked to Trump or his allies.

Atkins previously opposed penalties for corporate misconduct, defended executive stock option abuses, and criticized climate risk disclosures as regulatory overreach.

Senator Warren warned that his nomination signals a return to “pre-crisis deregulation” that could destabilize markets and erode public trust.

Warren wrote that “the American people deserve clear answers” and urged him to respond to more than 100 detailed questions ahead of his confirmation hearing, which has not yet been scheduled.

Atkins has not commented publicly as of press time.

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