U.S. Senator Elizabeth Warren has addressed concerns to SEC Chair-Designate Paul Atkins in anticipation of his nomination hearing. In a letter, Warren highlighted potential conflicts of interest stemming from Atkins's work with corporate interests and criticized his regulatory record prior to the 2008 financial crisis.
"You also have significant potential conflicts of interest through your work on behalf of corporate interests—and a long record of advocating for weaker protections for investors and weaker rules to prevent wrongdoing by giant corporations," stated Warren. She further noted, "You have been involved as a regulator or key adviser in historic failures of the financial system, including as an SEC Commissioner in the years before and during the 2008 financial crisis … you have also advocated for weaker SEC rules, including for Chinese accounting companies in the United States, at your corporate advisory firm."
The letter from Warren questioned Atkins on various topics such as the SEC’s independence, market structure issues, crypto regulation, and corporate governance. It also urged him to recuse himself from decisions involving his former clients due to potential conflicts of interest.
"The decisions you make as Chair will have significant implications for the long-term health of American commerce and economic growth," wrote Warren. She expressed concern about Atkins's past actions as an SEC commissioner leading up to the 2008 crisis and his advisory role with FTX before its collapse.
Warren emphasized her apprehension regarding Atkins’s connections with major banks and financial firms, which she believes could impair his ability to regulate impartially. "Your financial ties to the industries you will soon regulate raise serious concerns about your ability to avoid conflicts of interest as a regulator," she remarked.
Ahead of Thursday’s hearing, Warren concluded by asking Atkins to be prepared with answers that would provide clarity on how he plans to lead the SEC effectively.