New York Securities Fraud Lawyers Blog
On December 4, President-elect Trump announced that his pick for the next Securities and Exchange Commission (SEC) chair would be Paul Atkins. There seems to be a positive response to the news, as Bitcoin quickly traded over $100,000.
As Malecki Law has previously blogged, the current chair, Gary Gensler, has often been perceived a crypto skeptic. Although crypto fans were seemingly hopeful that Hester Peirce would be appointed, a current commissioner who is also known as “Crypto Mom,” the community does not seem disappointed in the direction of the SEC at all. Malecki Law gets sometimes multiple calls a day from people scammed around crypto based investments. This is likely due to the lack of regulation. If your advisor recommended that you purchase crypto securities against your best interests, and you suffered losses, you may have a claim. You should reach out to a Crypto-Securities law firm in New York, like Malecki Law, to review your situation. If someone in a foreign jurisdiction has your money, you may be out of luck.
Future SEC Chair Atkins’ Background
Mr. Atkins has his own experience working at the SEC, as he served as a commissioner from 2002 through 2008, notably during the lead up to the financial crisis of ’08.
Dennis Kelleher, who co-founded Better Markets, said that he believes Mr. Atkins is an “industry cheerleader” who “supported deregulation that contributed to the devastating 2008 crash.” Dan Gallagher, the current legal chief of Robinhood Markets, agreed with the positive sentiment, stating that Mr. Atkins is “the perfect pick.” Remember, if you have been scammed, you may feel differently. Robinhood has come up as a source of complaints by investors who held crypto on the platform that have called our office. If the brokerage firm held your crypto securities that caused you losses, securities lawyers at Malecki Law may be able to help.
Mr. Atkins received his Juris Doctor from Vanderbilt University School of Law and went on to practice law in financial services and securities related areas. Notably, he served as a partner at PricewaterhouseCoopers (PwC), and founded Patomak Global Partners, a financial consultancy firm, where he is the Chief Executive.
Public’s Response and What To Potentially Expect
While serving as a commissioner, Mr. Atkins was known for speaking out against certain issues like high penalties on levied companies. He also reminded the public that the SEC is not meant to just protect investors, but it also must work to increase both efficiency and competition. He once stated that the SEC “must not price those very investors out of the market” due to “burdensome regulations” or “nonsensical mandates.” If he begins his chair-ship with similar themes, it will likely be quite the contradiction to Mr. Gensler’s chair-ship. But when you suffered significant losses derived from crypto based investments in your brokerage accounts, you might feel differently and have a viable claim in the FINRA arbitration forum. You can further discuss your situation with a New York Crypto-Securities Lawyer, like the lawyers at Malecki Law.
The crypto community is likely having a positive response to the announcement because there may be less regulation and more innovation, just a few months away. Professor of law Alex Platt, even suggested that the announcement of Mr. Atkins’ nomination could be an indicator that the SEC will “return to status quo before Gensler.”
An overall positive outlook from the crypto community and public at large may lead to increasing demand from retail investors to purchase crypto securities. If there is an increase in demand to invest in crypto securities, it is likely that there will be an increase in demand for clarification of the same. If you believe your financial advisor wrongfully recommended crypto securities to you and your portfolio is on a downward trajectory, it is possible that you have a claim to recover those funds. You should schedule a free consultation with a Crypto-Securities law firm, like Malecki Law in New York, to analyze the facts and losses at issue.
Bill FIT21 – Background and Procedure
In line with needing clarification, as Malecki Law blogged on November 6, the FIT21 Bill might be a way to do this. In May 2024, the House of Representatives passed the bill, even though there was opposition from both the White House and the SEC’s chair. However, the Senate still needs to consider, debate, and vote on it.
At this time, it is unclear when the vote will occur due to the Senate’s schedule, especially which administration it will occur under. If the vote occurs after the inauguration, there is more of a likelihood that the bill could be passed since Republicans took control of the Senate, and tend to vote more crypto friendly than their Democrat counterparts. However, the Democratic support of FIT21 in the House was surprising as 71 democrat representatives voted in favor of the bill.
Notwithstanding the above, there is still a long way to go – a simple majority of 51 Senate votes is required if debate has ended or a supermajority of 60 Senate votes is required to end debate (also known as cloture) and make the Senate vote to keep the bill moving. This is a hurdle FIT21 has to face. After any differences have been dealt with and updates have been made, the final version of the bill is presented to the President, he then has 10 days to choose to agree and sign off on it, or veto the bill. Malecki Law will continue to monitor any developments here.
Contributions by Jacqueline N. Candella, Associate at Malecki Law