Sen. Elizabeth Warren is demanding answers from SEC Chair nominee Paul Atkins over his ties to defunct crypto exchange FTX ahead of his confirmation hearing on Thursday.
In a sharply worded letter, Warren raised concerns about Atkins’ role as an advisor to FTX. She questioned whether he ignored or missed red flags as the exchange misused billions in customer funds.
The Senate Banking Committee is set to hold a confirmation hearing for Atkins on March 27 as he seeks to lead the US SEC. Atkins previously served as an SEC commissioner from 2002 to 2008. He later founded the Washington-based consulting firm Patomak Global Partners.
Warren Flags Concerns Over Atkins’ FTX Work and Industry Influence
Atkins, known for opposing heavy-handed regulation, served as an advisor to FTX for ten months before it collapsed in Nov. 2022.
Warren noted that FTX was later exposed for large-scale fraud. She said Atkins failed to raise any warnings. Instead, he blamed the US regulatory system for being too unfriendly to crypto innovation after the collapse.
Warren’s letter highlighted the stark contrast between Atkins’ rhetoric and the eventual fallout, asking how a seasoned financial expert failed to detect FTX’s risky practices.
The senator also raised concerns about Atkins’ broader crypto affiliations. He has advised the Chamber of Digital Commerce and other crypto entities, drawing scrutiny about whether his policy decisions at the SEC could favor the industry.
Atkins Asked to Detail FTX Compensation, Enforcement Plans for Politically Connected Figures
Warren questioned how Atkins would enforce securities laws fairly given these associations, especially in light of the SEC’s recent decisions to drop multiple enforcement cases against major crypto players, including Ripple, Coinbase and Kraken.
Warren also questioned how Atkins would enforce market manipulation and insider trading rules in cases involving administration officials, including the President, his family and outside advisors connected to digital asset ventures.
She also called on Atkins to disclose his compensation from FTX and whether any of it has been subject to clawbacks during the exchange’s bankruptcy proceedings. She questioned whether he had any knowledge of the financial ties between FTX and Alameda Research or of any potential comingling of customer funds.
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