Democratic lawmakers question SEC Chairman, focusing on reduced cryptocurrency enforcement and potential political connections

At a hearing of the House Financial Services Committee in the United States, several Democratic lawmakers questioned SEC Chairman Paul Atkins regarding the recent reduction in enforcement actions against the cryptocurrency industry by the Securities and Exchange Commission (SEC), expressing concerns about whether these decisions are linked to Trump and his connections to the crypto industry.

Lawmakers specifically mentioned the SEC's suspension of the case against Tron founder Justin Sun and the withdrawal of the lawsuit against Binance. Democratic Congressman Stephen Lynch stated during the hearing that the decline in SEC enforcement has impacted the agency's reputation and demanded an explanation for why the related cases have not progressed. The SEC had previously sued Justin Sun in 2023 for allegedly issuing unregistered securities and manipulating trading volume, later applying for a delay in the case in 2025 to explore settlement possibilities; in May of the same year, the SEC withdrew its lawsuit against Binance under Atkins' leadership. Data shows that overall SEC enforcement actions in 2025 decreased by about 30% compared to the previous year, with crypto-related cases dropping by approximately 60%, which is seen as a signal of a shift in regulatory focus. In response, Atkins stated that the SEC still maintains a "strong enforcement posture" and noted that some changes are part of the normal adjustments following a change in regulatory leadership.