House Democrats Push SEC Chair To Resume Crypto Enforcement Actions
In a essential week for the cryptocurrency trade, following the delayed markup of the Crypto Market Structure invoice (CLARITY Act), House Democrats are calling on the Securities and Exchange Commission (SEC) chair, Paul Atkins, to reinstate enforcement actions in opposition to crypto corporations.
The letter, dated January 15, was signed by Representatives Maxine Waters, Sean Casten, and Brad Sherman, who expressed considerations relating to the SEC’s current retreat to research and prosecute alleged violations associated to “digital asset securities.”
House Democrats’ Allegations
The representatives highlighted that since January 2025, the SEC has dismissed or closed greater than a dozen circumstances involving crypto-related actions, together with litigations in opposition to main gamers like Binance, Coinbase, and Kraken. Just this week, the SEC additionally closed its case in opposition to the Zcash Foundation.
In their letter, the lawmakers alleged that given the trade’s “troubling historical past of harming traders,” the SEC’s resolution to drag again raises severe questions on its priorities and effectiveness. They warned that this shift places each traders and the broader US financial system at appreciable threat.
Moreover, the representatives highlighted unprecedented lobbying and financial contributions to political figures, together with President Trump and his associates, from the digital asset sector. They identified that this might have influenced the SEC’s resolution to desert a majority of its crypto enforcement actions.
Alleged Conflicts Of Interest Between Trump And Crypto
These considerations follows months of allegations from the Democratic Party suggesting conflicts of curiosity between the Trump administration and the crypto trade, significantly highlighted by final 12 months’s pardon for former Binance CEO Changpeng Zhao (CZ) and connections to the Trump-affiliated World Liberty Financial (WLFI).
According to the lawmakers, the SEC’s option to stroll away from these enforcement circumstances has raised suspicions of a potential pay-to-play dynamic. They argued that permitting violators of securities legal guidelines to flee with out repercussions contradicts the SEC’s major accountability.
Furthermore, the Representatives declare that current statements by Chair Atkins, who stated that ‘most crypto tokens should not securities’, have brought about confusion.
The Democrats additional identified that this lack of enforcement in opposition to digital property leaves traders “susceptible” and allegedly fails to guard them from potential violations out there.
Featured picture from DALL-E, chart from TradingView.com
