Trump’s nominee for SEC chairman once blamed the U.S. government for FTX’s collapse

Trump’s nominee to chair the U.S. Securities and Exchange Commission (SEC) has blamed the collapse of the FTX cryptocurrency exchange on an unusual suspect: the U.S. government itself. Atkins, 66, witnessed the FTX disaster firsthand, and the crypto empire’s spectacular collapse still reverberates in the digital asset community.

His Washington-based consulting firm Patomak Global Partners was listed as a creditor in the FTX bankruptcy case, and its board advisory agreement was signed in January 2022, about 10 months before Bankman-Fried's bankruptcy. Court documents show the company also served as a lobbyist for FTX.

Atkins pointed out in a podcast last year that "FTX's collapse was an international disaster, and I think it was because the United States did not develop rules to adapt to this new technology." He also admitted that Bankman-Fried’s fraud was the core reason for the exchange’s collapse.

The comments underscore years of frustration among cryptocurrency executives over what they see as a legal gray area shrouding digital assets, while also highlighting how dramatically the regulatory landscape is likely to change with Trump returning to the White House.

Trump's nomination of Atkins prompted cheers from the cryptocurrency community, with Bitcoin surpassing $100,000 for the first time within hours of the announcement. Patomak has also previously provided consulting services to blockchain stablecoin company Reserve.

Atkins did not respond to a request for comment.