Crypto venture capital firms welcome Donald Trump’s SEC pick, Paul Atkins, expecting a pro-crypto shift from predecessor Gary Gensler’s stricter enforcement policies.
Venture capital (VC) firms that specialize in cryptocurrency are responding favorably to the appointment of Paul Atkins as the chairman of the Securities and Exchange Commission by President-elect Donald Trump.
VCs anticipate that Atkins will adopt a more pro-crypto stance, which would differ from the policies of his predecessor, Gary Gensler, as per a Pitchbook report.
Gensler initially appeared to adopt a more accommodative approach; however, following the collapse of FTX and other crypto companies in 2022, they subsequently adopted a more confrontational stance. His strategy was met with severe criticism from the crypto industry, as many believed that the SEC was expelling talent from the United States.
Gensler did not heed warnings that his actions could compel U.S. Web3 companies to exit the country. Some significant actors in the crypto industry expressed their backing for Trump, who pledged to reverse the U.S. government’s restrictive stance toward crypto firms, in response to the SEC’s “regulation by enforcement.”
Trump has appointed pro-crypto individuals to critical government positions since securing his second term, such as David Sacks, who serves as the AI and crypto administrator.
Patrick McHenry, chairman of the U.S. House Financial Services Committee, anticipates that the crypto industry will experience improved times under the stewardship of Atkins and Sacks.
VC Optimism is Enhanced by Atkins’ Appointment
Many in the industry have praised Trump’s selections, and the announcement of Atkins as his choice to lead the Securities and Exchange Commission appeared to incite a bitcoin (BTC) rally. On December 5, bitcoin surpassed the $100,000 threshold during the rally.
Steve Brotman, the founder and managing partner of Alpha Partners, commented on Atkins’ selection, citing his status as a former SEC commissioner as a significant factor in the market’s apparent endorsement of his nomination.
“[Atkins] has been critical of some of the previous SEC Chair’s initiatives, particularly those seen as overly aggressive towards Wall Street and the crypto industry. This suggests he may pursue a more industry-friendly regulatory approach,” Brotman said.
Alex Marinier, the founder and general partner of New Form Capital, expressed confidence that Atkins, who previously worked with the trade group Token Alliance, will be instrumental in persuading crypto firms that have relocated overseas to return.
“Many top teams have been pushed offshore since FTX. Hopefully, that trend will be reversed. … We’ll start seeing more and more teams being based in the US as these regulations become clarified. There is, though, some PTSD that will probably take some months to dissipate,” Marinier explained.
