Democratic Congresswoman Maxine Waters criticizes SEC Chairman's cryptocurrency policy and calls for a hearing

The prediction market Kalshi shows that the probability of the Democratic Party winning a majority in the U.S. House of Representatives is about 75%. Against this backdrop, senior Democratic member of the U.S. House Financial Services Committee, Maxine Waters, has made sharper criticisms of the cryptocurrency regulatory policies of SEC Chairman Paul Atkins.

In a letter to the committee's Republican Chairman French Hill, Waters stated that the SEC has terminated or suspended several important enforcement cases against the cryptocurrency industry, involving entities such as Coinbase, Binance, and Justin Sun. She pointed out that the committee has not conducted a thorough review of the reasons for the SEC's abandonment of these cases, nor how to prevent fraud and manipulation in the market aimed at a large number of retail investors in the future.

Waters also mentioned that some of the companies involved announced the termination of cases publicly before the SEC's formal vote, questioning the "unusually active" role played by Atkins' team in the settlement process. She believes that the SEC's recent policy shifts, primarily advanced through staff statements rather than formal rules, may circumvent the requirements of the Administrative Procedure Act, undermining the role of public opinion gathering and congressional oversight. Therefore, she has called for Atkins to attend a hearing to provide explanations.

Reports indicate that since the Donald Trump administration took office and completed its leadership transition, the SEC has dropped several lawsuits against the cryptocurrency industry. Atkins has also publicly stated multiple times that supporting the development of the U.S. cryptocurrency industry will be a regulatory priority, a stance that has become a focal point of ongoing concern and questioning from the Democratic side.