'There's no playbook for this': Trump supporters urge SEC to focus on businesses
The surge of activity highlights a larger issue regarding the close relationships that businesses maintain with the Trump administration.
TroibNews 
Paul Atkins assumed his role as Wall Street’s chief regulator just a week ago, but he’s quickly facing potential political challenges involving some of President Donald Trump’s inner circle.
As the new chair of the Securities and Exchange Commission, Atkins is confronted with numerous decisions that directly engage Trump’s close associates. Crypto firms that contributed to Republican campaigns are urging the SEC to approve a variety of new products aimed at everyday investors. The agency must also determine how to handle an ongoing lawsuit against Elon Musk, which was filed just prior to Inauguration Day. Meanwhile, Trump Media & Technology Group, which features the president as its largest shareholder, has requested an investigation into a London-based hedge fund that bet against its stock. Additionally, Trump Media, the parent company of Truth Social, is preparing to launch its own investment products, which will likely require SEC approval.
Complicating matters further, Atkins’ agency finds itself entangled with MAGA world at a time when the White House is seeking greater oversight of traditionally independent regulators like the SEC. This dynamic poses a potential challenge for Atkins, who was a commissioner until 2008.
“He already has a hard job, and now that job will include managing a relationship with the White House that will be more robust than any chair previously would have had to manage,” said Jennifer Schulp, director of financial regulation studies at the Cato Institute, a libertarian think tank. “It’s going to be a lot of feeling in the dark.”
This flurry of activity highlights ongoing concerns about the close relationships businesses maintain with the Trump administration, which is already driving significant regulatory shifts in favor of corporate America. The president’s business ventures show a readiness to pursue new deals, even at the cost of questionable optics. For instance, a website for a memecoin launched by Trump just before his inauguration revealed plans to host an “intimate, private” dinner with him for its top investors last week.
White House assistant press secretary Taylor Rogers stated that administration officials adhere to all necessary conflict-of-interest laws and ethical standards, asserting that “any implication otherwise is unfounded.” The SEC opted not to comment on the situation.
“SEC Chairman Atkins and President Trump want the best for the American people and are aligned on maintaining fair, orderly and efficient markets while protecting everyday investors,” Rogers added in a statement.
So far, there is no indication that Trump intends to pressure the SEC on any specific issues or that his supporters are soliciting the White House's intervention. Many familiar with Atkins suggest that his agenda as chair is expected to closely align with the administration's aspirations for the agency. During his confirmation hearing, Atkins told lawmakers he does not foresee political interference while he serves as chair.
“We should call the shots as they are,” he stated.
However, Democrats are voicing concerns about the implications. Sen. Elizabeth Warren of Massachusetts, who criticized Atkins’ connections to the financial industry during his confirmation process, expressed to PMG her belief that the agency "exists to protect Main Street investors and keep our markets fair, not personally enrich the president and his family."
“Instead of doing the bidding of Trump family businesses, Chair Atkins and the SEC must do their duty to the American people — including by investigating if the president’s associates used his tariff chaos to make millions based on inside information as Americans frantically checked their retirement savings,” Warren said, referencing the turmoil in the stock market during Trump’s trade war.
Warren, a leading Democrat on the Senate Banking Committee, is among those urging an SEC investigation into trading activity surrounding Trump's tariff announcements. Just this past Friday, she called on Atkins to sidestep any "undue political interference and influence" as the SEC evaluates Trump Media's financial endeavors.
Democrats’ concerns partly arise from what they perceive as Trump's disregard for the independence traditionally upheld by federal financial and corporate watchdogs.
Since reclaiming the White House, the president has intensified his longstanding disputes with Federal Reserve Chair Jerome Powell, pushing for interest rate cuts and suggesting the possibility of firing the central bank chief—an idea he has since retracted as market conditions worsened. Additionally, Trump has sought to replace several Democrats at various regulatory bodies, including the Federal Trade Commission and the National Labor Relations Board.
“For Trump, the personal is political, so the issue for everyone at the SEC and the relevant regulators is: If you say no to him, are you going to get fired or demoted?” said a former SEC official who requested anonymity to speak candidly.
The SEC has previously encountered political heavyweights. During Trump’s first term, the agency, alongside other federal bodies, charged then-Rep. Chris Collins—one of the president’s early supporters—over insider trading. Trump pardoned Collins before leaving office in 2020. In the early 1990s, the SEC investigated a stock sale by President George W. Bush, who was then the son of the sitting president, with Paul Atkins serving as the chief of staff at the time.
“He’s not going to view his job as a handmaiden of the White House,” Schulp remarked about how Atkins might approach investigations. However, some former SEC officials warn that these are extraordinary times. Corey Frayer, who advised the last SEC chair, Gary Gensler, on crypto matters, noted, “there’s no playbook for this.”
"My dispiriting sense now is it really doesn't matter what the facts are. It’s about who you know,” said Herb Janick, a former SEC attorney involved in the Bush investigation.
Despite these challenges, Atkins, known for advocating lighter regulation, is generally believed to be aligned with the administration on hot-button issues like cryptocurrency. This alignment could bode well for the industry's attempts to introduce investment products linked to digital assets such as XRP and Solana, as highlighted by Bloomberg Intelligence senior ETF analyst Eric Balchunas.
However, the SEC’s stance on other matters remains uncertain. The agency has not publicly clarified its intentions regarding the lawsuit against Musk, who is accused of failing to properly disclose his 2022 Twitter stock purchases. Former SEC officials have indicated that the case may be challenging for the agency to abandon, and Republican Commissioner Hester Peirce voted in favor of continuing the lawsuit, according to Reuters.
Moreover, the investment firm Tuttle Capital Management proposes launching funds that would double investors' exposure to Trump’s memecoin as well as one linked to First Lady Melania Trump—a risky yet potentially profitable venture.
Matthew Tuttle, the firm’s founder, expressed uncertainty about the likelihood of receiving approval for these products. Yet, he stated that if this were any other SEC, he probably would not have pursued the applications at all.
“How could they deny them?” Balchunas questioned regarding the proposed memecoin offerings. “It’s literally your boss and his wife.”
Frederick R Cook for TROIB News
As the new chair of the Securities and Exchange Commission, Atkins is confronted with numerous decisions that directly engage Trump’s close associates. Crypto firms that contributed to Republican campaigns are urging the SEC to approve a variety of new products aimed at everyday investors. The agency must also determine how to handle an ongoing lawsuit against Elon Musk, which was filed just prior to Inauguration Day. Meanwhile, Trump Media & Technology Group, which features the president as its largest shareholder, has requested an investigation into a London-based hedge fund that bet against its stock. Additionally, Trump Media, the parent company of Truth Social, is preparing to launch its own investment products, which will likely require SEC approval.
Complicating matters further, Atkins’ agency finds itself entangled with MAGA world at a time when the White House is seeking greater oversight of traditionally independent regulators like the SEC. This dynamic poses a potential challenge for Atkins, who was a commissioner until 2008.
“He already has a hard job, and now that job will include managing a relationship with the White House that will be more robust than any chair previously would have had to manage,” said Jennifer Schulp, director of financial regulation studies at the Cato Institute, a libertarian think tank. “It’s going to be a lot of feeling in the dark.”
This flurry of activity highlights ongoing concerns about the close relationships businesses maintain with the Trump administration, which is already driving significant regulatory shifts in favor of corporate America. The president’s business ventures show a readiness to pursue new deals, even at the cost of questionable optics. For instance, a website for a memecoin launched by Trump just before his inauguration revealed plans to host an “intimate, private” dinner with him for its top investors last week.
White House assistant press secretary Taylor Rogers stated that administration officials adhere to all necessary conflict-of-interest laws and ethical standards, asserting that “any implication otherwise is unfounded.” The SEC opted not to comment on the situation.
“SEC Chairman Atkins and President Trump want the best for the American people and are aligned on maintaining fair, orderly and efficient markets while protecting everyday investors,” Rogers added in a statement.
So far, there is no indication that Trump intends to pressure the SEC on any specific issues or that his supporters are soliciting the White House's intervention. Many familiar with Atkins suggest that his agenda as chair is expected to closely align with the administration's aspirations for the agency. During his confirmation hearing, Atkins told lawmakers he does not foresee political interference while he serves as chair.
“We should call the shots as they are,” he stated.
However, Democrats are voicing concerns about the implications. Sen. Elizabeth Warren of Massachusetts, who criticized Atkins’ connections to the financial industry during his confirmation process, expressed to PMG her belief that the agency "exists to protect Main Street investors and keep our markets fair, not personally enrich the president and his family."
“Instead of doing the bidding of Trump family businesses, Chair Atkins and the SEC must do their duty to the American people — including by investigating if the president’s associates used his tariff chaos to make millions based on inside information as Americans frantically checked their retirement savings,” Warren said, referencing the turmoil in the stock market during Trump’s trade war.
Warren, a leading Democrat on the Senate Banking Committee, is among those urging an SEC investigation into trading activity surrounding Trump's tariff announcements. Just this past Friday, she called on Atkins to sidestep any "undue political interference and influence" as the SEC evaluates Trump Media's financial endeavors.
Democrats’ concerns partly arise from what they perceive as Trump's disregard for the independence traditionally upheld by federal financial and corporate watchdogs.
Since reclaiming the White House, the president has intensified his longstanding disputes with Federal Reserve Chair Jerome Powell, pushing for interest rate cuts and suggesting the possibility of firing the central bank chief—an idea he has since retracted as market conditions worsened. Additionally, Trump has sought to replace several Democrats at various regulatory bodies, including the Federal Trade Commission and the National Labor Relations Board.
“For Trump, the personal is political, so the issue for everyone at the SEC and the relevant regulators is: If you say no to him, are you going to get fired or demoted?” said a former SEC official who requested anonymity to speak candidly.
The SEC has previously encountered political heavyweights. During Trump’s first term, the agency, alongside other federal bodies, charged then-Rep. Chris Collins—one of the president’s early supporters—over insider trading. Trump pardoned Collins before leaving office in 2020. In the early 1990s, the SEC investigated a stock sale by President George W. Bush, who was then the son of the sitting president, with Paul Atkins serving as the chief of staff at the time.
“He’s not going to view his job as a handmaiden of the White House,” Schulp remarked about how Atkins might approach investigations. However, some former SEC officials warn that these are extraordinary times. Corey Frayer, who advised the last SEC chair, Gary Gensler, on crypto matters, noted, “there’s no playbook for this.”
"My dispiriting sense now is it really doesn't matter what the facts are. It’s about who you know,” said Herb Janick, a former SEC attorney involved in the Bush investigation.
Despite these challenges, Atkins, known for advocating lighter regulation, is generally believed to be aligned with the administration on hot-button issues like cryptocurrency. This alignment could bode well for the industry's attempts to introduce investment products linked to digital assets such as XRP and Solana, as highlighted by Bloomberg Intelligence senior ETF analyst Eric Balchunas.
However, the SEC’s stance on other matters remains uncertain. The agency has not publicly clarified its intentions regarding the lawsuit against Musk, who is accused of failing to properly disclose his 2022 Twitter stock purchases. Former SEC officials have indicated that the case may be challenging for the agency to abandon, and Republican Commissioner Hester Peirce voted in favor of continuing the lawsuit, according to Reuters.
Moreover, the investment firm Tuttle Capital Management proposes launching funds that would double investors' exposure to Trump’s memecoin as well as one linked to First Lady Melania Trump—a risky yet potentially profitable venture.
Matthew Tuttle, the firm’s founder, expressed uncertainty about the likelihood of receiving approval for these products. Yet, he stated that if this were any other SEC, he probably would not have pursued the applications at all.
“How could they deny them?” Balchunas questioned regarding the proposed memecoin offerings. “It’s literally your boss and his wife.”
Frederick R Cook for TROIB News
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