Louisiana Senator John Kennedy ripped into SEC nominee Paul Atkins during a fiery Senate hearing on March 27, 2025, grilling the former commissioner over the catastrophic FTX cryptocurrency collapse.
Kennedy didn’t mince words. He demanded answers about why the SEC failed to prevent the fraud that led to billions in investor losses and landed founder Sam Bankman-Fried a 25-year prison sentence.
“The SEC could’ve shut this down in a heartbeat with a court injunction,” Kennedy barked. “Instead, y’all sat on your hands while SBF robbed people blind.”
The exchange grew particularly heated when Kennedy brought up Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, both chaired professors at Stanford Law School.
Kennedy zeroed in on recent reports that the convicted fraudster’s parents were seeking a presidential pardon for their son. “These folks are crooks, plain and simple,” he said. “And now they’re hoping their fancy Stanford connections will bail junior out.”
The senator questioned whether Stanford University had returned donations from the Bankman-Fried family. He suggested the prestigious institution might be complicit in the scandal. American investors demand that universities demonstrate accountability in higher education when accepting potentially tainted funds. Awkward silence filled the room.
Atkins, who served as SEC commissioner from 2002 to 2008, appeared uncomfortable as Kennedy highlighted Atkins’ own potential conflicts. His firm, Patomak Global Partners, previously advised FTX before its spectacular implosion. Not a great look.
Kennedy’s aggressive questioning reflects his ongoing concern about SEC’s delayed actions following the FTX collapse, which left many investors without recourse.
“Next time you folks show up here, I’m gonna pounce like a ninja,” Kennedy warned, promising heightened scrutiny of the SEC’s approach to cryptocurrency regulation.
The confrontation underscored broader tensions over crypto regulation. Atkins promised a “rational, coherent, and principled” framework if confirmed, attempting to distance himself from the scandal.
The FTX collapse has become a lightning rod in Washington. Some see it as proof that crypto needs tighter controls. Others blame regulators for missing obvious red flags. Kennedy clearly belongs to the latter camp.
As the hearing wrapped up, one thing was crystal clear: the ghosts of FTX will haunt the SEC for years to come.
