The Senate Banking Committee turned up the heat on Thursday, March 27, 2025, grilling Paul Atkins, President Donald Trump’s pick to lead the Securities and Exchange Commission (SEC). Lawmakers zeroed in on Atkins’ ties to the collapsed crypto exchange FTX and the SEC’s rocky track record under former Chair Gary Gensler. With crypto regulation in the spotlight and Trump’s pro-crypto agenda looming large, the hearing was a high-stakes showdown—and Atkins didn’t escape unscathed.
FTX Ties Take Center Stage
Atkins, founder of Patomak Global Partners—a consulting firm he launched in 2009—faced tough questions about his firm’s advisory role with FTX. Reports, including from The Wall Street Journal, peg Patomak as a client of the now-bankrupt exchange starting in early 2022, just months before its dramatic implosion later that year. FTX’s ex-CEO, Sam Bankman-Fried, was convicted in November 2023 on seven counts of fraud, leaving a trail of questions about who knew what and when.
Sen. Elizabeth Warren, the committee’s top Democrat, didn’t pull punches. “If you’re confirmed, you’ll be in a prime spot to deliver for all those clients who’ve been paying you millions,” she said, hinting at potential conflicts of interest. Atkins, who disclosed earlier this week owning shares in three crypto-related companies (per Fortune), stayed composed but didn’t dodge the heat entirely. His past as an SEC commissioner from 2002 to 2008 under George W. Bush also came up, with lawmakers probing his role during the financial crisis—a not-so-subtle jab at his regulatory chops.
Then there was Sen. John Kennedy (R-La.), who went straight for the jugular over FTX. He demanded what the SEC, under Atkins’ potential leadership, would do about Sam Bankman-Fried’s parents, Barbara Fried and Joseph Bankman. The SEC sued Bankman-Fried in 2022, but his parents—now pushing for a Trump pardon for their son—haven’t faced charges. “I’ll keep asking,” Kennedy warned, signaling he’s not letting this one slide.
Fixing Gensler’s Mess?
The hearing wasn’t just about Atkins’ past—it was a referendum on Gary Gensler’s tenure, too. Gensler, who stepped down in January 2025, left behind a legacy of crypto skepticism, aggressive enforcement, and a string of agency missteps. Senate Banking Committee Chair Tim Scott (R-S.C.) pressed Atkins on how he’d turn things around, pointing to cases like Debt Box—a 2023 SEC lawsuit against a crypto startup that backfired. A judge slammed the agency for misleading statements, costing it $1.8 million in fines and a heap of embarrassment.
Atkins didn’t mince words. “If I’m confirmed, I commit to getting to work to boost morale, fix the dysfunction, and get back to basics,” he told the committee. In prepared testimony, he doubled down, calling a clear regulatory framework for digital assets a “top priority.” It’s a stark pivot from Gensler’s wary approach, which saw the SEC label most cryptocurrencies as securities and pile lawsuits on firms for dodging registration rules. Since Gensler’s exit, the agency’s already shifted gears—scrapping controversial crypto accounting rules, dropping cases against big players, and even forming a crypto task force. Atkins seems poised to accelerate that thaw.
Packed Hearing, Thin on Crypto
Crypto wasn’t the only topic on the table. The Senate was juggling other Trump nominees—Jonathan Gould for Comptroller of the Currency, Luke Pettit for Assistant Secretary of the Treasury, and Marcus Molinaro for Federal Transit Administrator—so the focus zigzagged. Lawmakers didn’t dive as deep into digital assets as some expected, leaving crypto fans hungry for clarity on Atkins’ vision. Still, his nomination, first tapped by Trump in December 2024, signals a pro-crypto tilt that’s got the industry buzzing.
What’s Next for Paul Atkins and the SEC?
Atkins isn’t a newbie—he’s a seasoned player with Patomak’s client list boasting banks, crypto exchanges, and DeFi platforms. That experience cuts both ways: it’s a badge of expertise for supporters, a red flag for critics like Warren who smell bias. With the SEC at a crossroads and Trump pushing to make the U.S. a crypto powerhouse (complete with his own memecoin ties), Atkins’ confirmation could reshape the game.
For blocknewsx.com readers, this is one to watch. Will Atkins clean up Gensler’s mess and deliver a crypto-friendly SEC? Or will his FTX baggage and Wall Street roots trip him up? The Senate’s verdict is pending, but one thing’s clear: the Paul Atkins SEC era, if it happens, won’t be boring.
