Cryptocurrency-focused venture capital firms are optimistic about President-elect Donald Trump’s selection of Paul Atkins as Securities and Exchange Commission (SEC) chair.
Trump’s Picks Expected to Reverse Gensler-Era Policies
Cryptocurrency-focused venture capital (VC) firms are reacting positively to President-elect Donald Trump’s selection of Paul Atkins as chair of the Securities and Exchange Commission. According to a Pitchbook report, VCs expect Atkins to take a more pro-crypto approach, diverging from the policies of his predecessor, Gary Gensler.
Gensler initially appeared to take a more accommodative approach but later adopted a more confrontational stance after the collapse of FTX and other crypto companies in 2022. His approach drew sharp criticism from the crypto industry, with many feeling the SEC was driving talent out of the U.S.
Despite warnings that his actions could force U.S. Web3 companies to leave the country, Gensler did not relent. The SEC’s so-called regulation by enforcement prompted some key crypto industry players to support Trump, who vowed to end the U.S. government’s hardline approach toward crypto firms.
Since securing his second term, Trump has appointed pro-crypto individuals to key government posts, including David Sacks as AI and crypto czar. Patrick McHenry, chairman of the U.S. House Financial Services Committee, predicts better times ahead for the crypto industry under Atkins and Sacks’ leadership.
Atkins Appointment Boosts VC Optimism
Trump’s picks have been welcomed by many in the industry, and the announcement of Atkins as his choice to head the Securities and Exchange Commission appeared to spark a bitcoin (BTC) rally. The rally saw bitcoin break through the $100,000 mark on Dec. 5.
Commenting on Atkins’ selection, Steve Brotman, founder and managing partner of Alpha Partners, cited his profile as a former SEC commissioner as a key 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, founder and general partner at New Form Capital, expressed optimism that Atkins, who previously worked with the trade group Token Alliance, will play a crucial role in convincing crypto firms that 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.