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Atkins’ SEC Pick Raises Questions on Future Enforcement

 |  January 7, 2025

President-elect Donald Trump’s pick for the Securities and Exchange Commission (SEC), Paul Atkins, has a history of opposing aggressive enforcement actions during his tenure as a commissioner, a stance that could shape the direction of the agency under his leadership, according to Reuters. Atkins, who served from 2002 to 2008, consistently voted against punitive measures aimed at major corporations, including high-profile firms like Citigroup and IBM.

A review of SEC records from that period reveals that Atkins voted against at least 10 enforcement actions. These included cases involving individuals and companies accused of violations. The commissioner often clashed with fellow Republicans on the SEC’s leadership, challenging their efforts to hold corporations accountable. Three former SEC enforcement staff members told Reuters that Atkins was known for meticulously scrutinizing enforcement proposals, frequently pushing back on recommendations to bring charges.

Atkins’ criticism of the SEC’s approach to enforcement was no secret. He argued that corporate fines often harmed shareholders rather than the wrongdoers themselves, and advocated for focusing on individual fraudsters instead of corporate misconduct. His views were particularly notable during the aftermath of the Enron and WorldCom accounting scandals, which led to heightened scrutiny of corporate behavior.

The details of Atkins’ dissenting votes, which had not been widely reported before, offer a glimpse into his approach to regulation. As President-elect Trump’s SEC pick, his history suggests that Wall Street may face less stringent oversight compared to the aggressive enforcement measures under current SEC Chairman Gary Gensler, whose agency imposed over $20 billion in penalties and charges.

Read more: US Justice Department Urges Supreme Court to Deny Trump Request on TikTok Ban

The shift in enforcement priorities under Atkins could have implications for high-profile companies under investigation by the SEC. Among those potentially affected are electric vehicle maker Tesla, cryptocurrency exchanges Coinbase and Binance, and major investment firms such as BlackRock, Carlyle, and TPG. Sources familiar with Atkins’ views suggest that under his leadership, the SEC would likely target misconduct that directly impacts investors, such as fraud schemes, rather than focusing on broader corporate malfeasance where harm is less immediately apparent.

Critics, however, warn that such a shift in focus could pose risks, especially given that large corporations can have systemic effects on the broader market. Tyler Gellasch, a former SEC official who now leads the Healthy Markets Association, argued that this approach could allow companies with significant influence to avoid meaningful accountability.

“If Atkins’ nomination is confirmed, it should alleviate some of the tension in compliance departments,” Gellasch told Reuters, referencing how his less aggressive stance on enforcement may ease pressure on companies.

Atkins has not publicly commented on his SEC nomination or his stance on enforcement since being nominated. In recent years, he has advocated for a more hands-off regulatory approach and has represented businesses in regulatory disputes through his consultancy, Patomak Global Partners.

Source: Reuters

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

 |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal