Sen. Elizabeth Warren is demanding solutions from SEC Chair nominee Paul Atkins over his ties to defunct crypto trade FTX forward of his affirmation listening to on Thursday.
In a sharply worded letter, Warren raised considerations about Atkins’ position as an advisor to FTX. She questioned whether or not he ignored or missed purple flags because the trade misused billions in buyer funds.
The Senate Banking Committee is about to carry a affirmation listening to for Atkins on March 27 as he seeks to steer the US SEC. Atkins beforehand served as an SEC commissioner from 2002 to 2008. He later based the Washington-based consulting agency Patomak World Companions.
Warren Flags Issues Over Atkins’ FTX Work and Trade Affect
Atkins, recognized for opposing heavy-handed regulation, served as an advisor to FTX for ten months earlier than it collapsed in Nov. 2022.
Warren famous that FTX was later uncovered for large-scale fraud. She stated Atkins failed to boost any warnings. As a substitute, he blamed the US regulatory system for being too unfriendly to crypto innovation after the collapse.
Warren’s letter highlighted the stark distinction between Atkins’ rhetoric and the eventual fallout, asking how a seasoned monetary knowledgeable did not detect FTX’s dangerous practices.
The senator additionally raised considerations about Atkins’ broader crypto affiliations. He has suggested the Chamber of Digital Commerce and different crypto entities, drawing scrutiny about whether or not his coverage choices on the SEC may favor the business.
Warren additionally despatched Atkins a for much longer letter with dozens of wide-ranging questions for him to supply written solutions to forward of his listening to this week — together with about his position in advising FTX and whether or not Trump has mentioned his memecoin with him.
Hyperlink: https://t.co/ZksHpRguHS https://t.co/xdViBSWtYp— Eleanor Mueller (@Eleanor_Mueller) March 24, 2025
Atkins Requested to Element FTX Compensation, Enforcement Plans for Politically Related Figures
Warren questioned how Atkins would implement securities legal guidelines pretty given these associations, particularly in mild of the SEC’s latest choices to drop a number of enforcement instances in opposition to main crypto gamers, together with Ripple, Coinbase and Kraken.
Warren additionally questioned how Atkins would implement market manipulation and insider buying and selling guidelines in instances involving administration officers, together with the President, his household and out of doors advisors linked to digital asset ventures.
She additionally known as on Atkins to reveal his compensation from FTX and whether or not any of it has been topic to clawbacks through the trade’s chapter proceedings. She questioned whether or not he had any data of the monetary ties between FTX and Alameda Analysis or of any potential comingling of buyer funds.
The put up Sen. Warren Presses SEC Nominee Paul Atkins on FTX Hyperlinks and Regulatory Rollbacks appeared first on Cryptonews.