.
Last week, the announcement that Donald Trump would nominate Paul Atkins, a cryptocurrency advocate, to head the Securities and Exchange Commission (S.E.C.) caused a surge in the price of Bitcoin, with some enthusiasts predicting even higher prices to come. This excitement and optimism in the crypto markets is reminiscent of the dot-com boom of the late 1990s, which ultimately ended in a bust.
Atkins, a conservative lawyer and former S.E.C. commissioner, is expected to take a more friendly stance towards the crypto industry, which has been under scrutiny by the agency under the leadership of Gary Gensler. Gensler, who was nominated by President Joe Biden, has described the industry as rife with fraud and scams and has filed lawsuits against numerous crypto firms.
With Atkins at the helm, it is likely that the S.E.C.’s ongoing lawsuits and other cases against crypto companies will be put on hold. This has raised concerns among critics of the industry, who fear that the agency will weaken regulations and allow for more fraud and scams to occur. Dennis Kelleher, the president of Better Markets, a financial-reform group, warned that this could lead to a situation similar to the “caveat emptor” mentality of the 1920s.
However, for crypto leaders, Atkins’ nomination is a landmark moment that signals a paradigm shift towards mainstream acceptance of digital assets. Michael Novogratz, the founder and CEO of Galaxy Digital, hailed the choice as a sign of the industry’s growing importance.
The dot-com boom of the late 1990s was fueled by the rise of online commerce and the creation of startups that issued stock on the Nasdaq. Similarly, the rise of cryptocurrencies and the issuance of digital assets have been the driving force behind the recent surge in the industry. While some see this as a positive development, others warn of the potential risks and dangers of unregulated markets.
As the crypto industry continues to evolve and attract more attention, the role of the S.E.C. and its approach to regulating this market will be closely watched. The nomination of Paul Atkins as its new head signals a significant shift in the agency’s stance towards cryptocurrencies, and its impact on the industry remains to be seen.