Cryptocurrency-focused venture capital (VC) firms are optimistic about President-elect Donald Trump’s selection of Paul Atkins as chair of the Securities and Exchange Commission (SEC). According to a report by Pitchbook, VCs believe that Atkins will adopt a more pro-crypto approach, deviating from the policies of his predecessor, Gary Gensler.
Initially, Gensler seemed to be more accommodating towards the cryptocurrency industry, but he later took a confrontational stance after the collapse of FTX and other crypto companies in 2022. This approach drew criticism from the crypto industry, with many feeling that the SEC was driving talent out of the United States.
Despite warnings that his actions could lead to U.S. Web3 companies leaving the country, Gensler did not back down. The SEC’s regulation by enforcement strategy prompted key crypto industry players to support Trump, who promised to end the government’s strict approach towards crypto firms.
Since securing his second term, Trump has appointed individuals with pro-crypto views to important government positions, including David Sacks as AI and crypto czar. Patrick McHenry, chairman of the U.S. House Financial Services Committee, predicts a brighter future for the crypto industry under the leadership of Atkins and Sacks.
Trump’s picks have been well-received by many in the industry, and the announcement of Atkins as the nominee for the Securities and Exchange Commission chair seemed to trigger a rally in the price of bitcoin (BTC). On December 5, bitcoin surpassed the $100,000 mark.
Commenting on Atkins’ selection, Steve Brotman, founder and managing partner of Alpha Partners, highlighted his experience as a former SEC commissioner as a key factor in the market’s apparent support for his nomination. Brotman suggested that Atkins may pursue a more industry-friendly regulatory approach, particularly in relation to Wall Street and the crypto industry.
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 have relocated overseas to return to the United States. Marinier explained that many top teams had moved offshore since the collapse of FTX, but he hoped that this trend would be reversed as regulations become clearer. However, he also acknowledged that it may take some time for the industry to recover from the trauma caused by recent events.
