Senate Banking Committee Advances Key Crypto Regulators

The U.S. Senate Banking Committee has voted to advance the nominations of Paul Atkins to permanently take over the Securities and Exchange Commission (SEC) and Jonathan Gould to lead the Office of the Comptroller of the Currency (OCC). These positions are crucial for the future regulation of the crypto sector in the U.S. The nominations now move to consideration by the overall Senate, where approvals will allow Atkins and Gould to start work at their respective regulatory agencies.

Both nominations advanced under party-line votes in the committee, with each receiving 13-11 votes. Committee Chairman Tim Scott, a South Carolina Republican, praised the nominees before the vote. He highlighted that Paul Atkins, a former SEC commissioner, will promote capital formation and provide much-needed clarity for digital assets. Regarding Jonathan Gould, Scott noted that the nominee, once chief counsel at the OCC, will address the politically-motivated debanking, a significant concern for the crypto industry.

Senator Elizabeth Warren, the committee's ranking Democrat, issued criticisms of the nominees before rejecting all of them. She argued that Atkins was misguided in the leadup to the 2008 global financial crisis during his previous tenure at the SEC. Warren also stated that Gould weakened the rules and undermined the banking system's safety and soundness during his time at the OCC.

The recent confirmation hearing for the nominees did not delve deeply into crypto issues, although both nominees would be heavily involved in future regulation of the industry. The Senate Banking Committee's approval of these nominations is a significant step forward in the confirmation process, and it represents an important development in the effort to address the growing use of cryptocurrencies and other digital assets in the U.S. financial markets.