FTX News: Senator Elizabeth Warren Raises Concerns Over SEC Chair Nominee Paul Atkins’ Crypto Ties

In a recent development in the world of cryptocurrency regulation, Senator Elizabeth Warren has expressed her concerns regarding the nomination of Paul Atkins as the next Chair of the Securities and Exchange Commission (SEC). Here’s a closer look at the situation and its implications for the crypto industry.

Senator Elizabeth Warren Questions SEC Chair Nominee Paul Atkins Amid Concerns Over Crypto Ties

Senator Elizabeth Warren, known for her anti-crypto stance, has questioned the nomination of Paul Atkins as the next SEC chair. She cited potential conflicts of interest, Atkins’ call for weaker SEC regulations, and his connections to the FTX crypto exchange. Atkins was an SEC commissioner during the 2008 financial crisis and has a history of working for corporate interests. Warren wrote that Atkins’ record raises questions about his judgment and ability to serve as an effective SEC chair if confirmed.

Could Hyperliquid’s Actions Spark Another FTX-Like Collapse?

Some industry leaders are warning that Hyperliquid, a centralized exchange, may face a fate similar to FTX’s collapse in 2022 due to mismanagement and lack of transparency. The controversy began when a trader manipulated the JELLY token, causing a $12 million loss to the platform’s Hyperliquidity Provider (HLP) vault. In response, Hyperliquid delisted JELLY and settled positions at $0.0095, overriding the oracle price of $0.50, which mitigated damage but triggered criticism.