House Democrats Blast SEC Over Dropped Crypto Cases, Ripple Lawsuit Talk Resurfaces

House Democrats have accused the SEC of abandoning many high-profile investigations, together with its authorized battle with Ripple, which has introduced consideration again to the company’s dealing with of crypto enforcement. 

The claims, which have been outlined in a January 15 letter to SEC Chair Paul Atkins, raised questions on why a number of instances have been dropped after favorable court docket rulings and whether or not political relationships performed any position in these selections. However, based on crypto lawyer Bill Morgan, these instances are wrapped up, accomplished, and dusted.

Lawmakers Say SEC Walked Away From Major Crypto Cases

In a January 15, 2026 letter addressed to Atkins, House Democrats accused the company of dramatically scaling again crypto enforcement since early 2025. The lawmakers claimed the SEC has dismissed or closed greater than a dozen main crypto-related instances, together with actions towards Binance, Coinbase, Kraken, and Ripple, regardless of having obtained favorable court docket rulings in a few of these issues. 

According to the letter, corporations whose instances or investigations have been dismissed donated a minimum of $1 million every to Trump’s inauguration. This raises issues about an unmistakable inference of a pay-to-play scheme, investor safety and market integrity at a time when digital property are beginning to turn into deeply intertwined with capital markets.

Much of the letter’s criticism was targeted on the SEC’s resolution to hunt and keep a keep in its case against Justin Sun, which has now been in place for about 11 months now. Unlike all the opposite instances, the SEC’s case towards Justin Sun has not but been dismissed. Democratic Lawmakers claimed this transfer sends a harmful sign that political connections might affect enforcement outcomes. 

The letter explicitly referenced Sun’s reported monetary ties to companies linked to Donald Trump. One of which was Sun’s reveal in September 2025 that he was purchasing an additional $10 million price of $WLFI tokens from World Liberty Financial (WLFI), a Trump family business. 

According to the democrats, such circumstances may undermine public belief within the SEC’s independence. The Letter additionally seeks data associated to the SEC’s information of Sun’s ties to the People’s Republic of China and any CCP-affiliated individuals or entities.

Crypto Lawyer Pushes Back On Ripple Lawsuit Talk

The letter by House Democrats brings into focus whether or not political stress may result in a brand new motion towards Ripple and different corporations. However, based on Morgan, this isn’t potential.

Morgan dismissed the concept that the SEC may merely relaunch instances it has already litigated or closed on the identical grounds, pointing to the authorized doctrine of res judicata. Under that precept, as soon as a matter has been conclusively determined between the identical events, it can’t be retried on equivalent points.

“Too dangerous the SEC can’t go towards these corporations once more on the identical issues. Res Judicata child. Live with it fools,” he said.

Still, one unresolved query hangs over the broader controversy. Unlike the opposite crypto instances cited within the lawmakers’ letter, the SEC’s motion towards Justin Sun has not been formally dismissed and will be revisited anytime.

Featured picture from Getty Images, chart from TradingView