Dive Brief:

• The Senate late Wednesday voted to approve President Donald Trump’s nomination of former business consultant Paul Atkins to lead the Securities and Exchange Commission.
• The nomination was confirmed on a 52-44 party-line vote, with no support from Democrats. Four senators, including John Fetterman, D-Pa., and Bernie Sanders, I-Vt., did not vote.
• “Paul Atkins brings a wealth of experience and dedication to safeguarding our capital markets,” Sen. Tim Scott, R-S.C., the top Republican on the Senate Banking, Housing, and Urban Affairs Committee, said in a statement after the vote. “His tenure will mark a pivotal moment to roll back harmful Biden-era policies, promote capital formation, and enhance opportunities for retail investors.”

Dive Insight:

As the successor to former SEC Chair Gary Gensler, Atkins is likely to usher in more targeted enforcement and softer, more collaborative rulemaking, which may ease CFOs’ regulatory burdens, CFO Dive previously reported. 

During a confirmation hearing before the Senate Banking Committee last month, Sen. Elizabeth Warren, D-Mass., said the nomination raised “breathtaking” potential conflicts of interest. She referred to Patomak Global Partners, a consulting firm founded by Atkins that has served financial institutions including digital-asset firms.

Atkins has said that he would resign his position as chief executive of Patomak upon being confirmed by the Senate. He has also vowed to divest his interest in the firm within 90 days of Senate confirmation.

In remarks before the Senate vote on Wednesday, Warren referred to Atkins as a “career Wall Street suit” and “corporate guy.” She also criticized Republicans for prioritizing a vote to put “a fox in charge of the hen house” instead of advancing a bill she has introduced with other senators to rein in recent tariff measures by Trump.

“Getting Mr. Atkins confirmed instead of stopping the economic chaos — this is the priority for Republicans in Congress right now,” said Warren, the Senate Banking Committee’s top Democrat.

That sentiment was echoed in a statement issued by Dennis Kelleher, CEO of Better Markets, a nonprofit that promotes financial reform. 

“As the U.S. financial markets experience extreme stress and volatility due to erratic policy announcements by the President, the American people need an independent SEC Chair who will be vigilant in supervising and policing those markets to protect investors and prevent crashes,” Kelleher said. “Unfortunately, the newly confirmed SEC Chair Paul Atkins will likely do the opposite and at the worst possible time.”

“Atkins can be expected to avoid regulation that he perceives as unnecessarily burdensome on business,” according to a recent analysis by attorneys at law firm Proskauer Rose. However, he has signaled that he would back regulation that he believes “appropriately balances effectiveness and costs,” the firm’s report states.

The Financial Services Institute, a non-profit that advocates on behalf of independent financial advisors and financial services firms, called on Atkins and SEC staff to update regulations and guidance to align with “rapid technological advancements, evolving investor expectations and the emergence of innovative financial products.” 

“With the ongoing market volatility and economic uncertainty, the need for professional, objective financial advice has never been greater,” Dale Brown, the group’s president and CEO, said in a statement. “The rules of the regulatory road must be clearly defined so financial advisors and firms can confidently and effectively serve Main Street American investors.”

Besides leading Patomak Global Partners, Atkins has also served as co-chair of the Chamber of Digital Commerce’s Token Alliance, a lobbying group for the crypto industry. He also served as a commissioner at the SEC under former President George W. Bush.

“We welcome Paul Atkins as the next Chairman of the SEC,” SEC commissioners Mark Uyeda, Hester Peirce and Caroline Crenshaw said in a joint statement. “A veteran of our Commission, we look forward to him joining with us, along with our dedicated staff, to fulfill our mission on behalf of the investing public.”