|

Maxine Waters Demands SEC Hearing Over Dropped Crypto Cases

Maxine Waters SEC Hearing - Letter Screenshot

Representative Maxine Waters has formally requested House Financial Services Committee Chairman French Hill schedule an oversight listening to with SEC Chairman Paul Atkins, citing the company’s dismissal of main crypto enforcement actions and what she describes as unprecedented politicization underneath the Trump administration.

Waters despatched the detailed letter on Sunday, marking her most forceful push but for congressional scrutiny of the SEC’s dramatic coverage reversal since Atkins assumed management.

The rating Democrat famous the Committee has held no hearings with Atkins regardless of “fast, important, and questionable coverage shifts,” contrasting this with former Chair Gary Gensler’s two appearances throughout his first yr.

Maxine Waters SEC Hearing - Letter Screenshot
Source: Waters Letter

Crypto Enforcement Retreat Draws Fire

The lawmaker’s central concern is the SEC’s termination of enforcement actions in opposition to Coinbase, Binance, and Justin Sun, amongst others, who have been beforehand accused of securities violations.

“The SEC has terminated or stayed main enforcement actions in opposition to a number of crypto firms and people that had been credibly accused of main violations of our securities legal guidelines,” Waters wrote, including that defendants typically introduced case dismissals earlier than the Commission voted.

Waters questioned whether or not Chairman Atkins’ workplace took “an unusually energetic position in negotiating an finish to those circumstances,” demanding the Committee look at the SEC’s rationale for abandoning issues affecting tens of millions of retail buyers.

The company has dropped or paused practically sixty percent of crypto cases since Trump’s January inauguration, in keeping with current experiences, whereas no new crypto enforcement actions have been filed in 2025.

The SEC dismissed circumstances in opposition to Coinbase in February 2025 and in opposition to Kraken in March, each resolved with out fines or admissions of wrongdoing.

Binance’s case resulted in May following a February pause request, whereas the Ripple lawsuit concluded in August with a lowered $125 million penalty, however appeals have been withdrawn.

Waters has persistently opposed Trump’s crypto connections, beforehand slamming his October pardon of Binance founder Changpeng Zhao as legitimizing “crypto crime” and enabling operations “with just about no guardrails.“

Independence and Transparency Concerns Mount

Beyond crypto enforcement, Waters outlined ten areas requiring fast oversight, beginning with SEC independence.

“Congress designed the SEC to be unbiased of the White House. Yet, Chairman Atkins repeatedly frames the company’s agenda as an instrument of the Administration,” she acknowledged, warning that this “politicization threatens market integrity” amid suspicious buying and selling patterns round tariff bulletins.

The rating member criticized the SEC’s method to policymaking, which “eschews notice-and-comment rulemaking in favor of workers statements,” calling it a violation of the Administrative Procedure Act.

Waters highlighted withdrawn investor-protection guidelines protecting artificial intelligence, cybersecurity, and market construction reforms, stemming from GameStop-era issues, and questioned what “empirical evaluation the SEC relied upon in reversing course.“

Meanwhile, the SEC has delayed hedge fund transparency necessities and prolonged securities-lending reporting deadlines into 2028, strikes Waters says successfully kill manipulation-detection reforms.

The company additionally introduced it is going to largely stop issuing no-action responses for shareholder proposal exclusions following Atkins’ directions, probably emboldening executives to disregard investor issues.

Deregulation Agenda Under Scrutiny

Waters in contrast Atkins’ regulatory rollbacks to circumstances previous the 1929 inventory market crash, echoing issues raised by SEC Commissioner Caroline Crenshaw.

The company’s Spring 2025 agenda outlines potential reductions in registration necessities and disclosure obligations, in addition to expanded entry to non-public property for retirement accounts.

“We haven’t had the chance to look at Chairman Atkins’s deregulatory agenda,” Waters famous.

The letter additionally addressed the SEC’s determination to desert climate-risk disclosure guidelines regardless of investor demand for standardized data, in addition to issues about weakening market surveillance underneath a “notice-first enforcement method.”

Waters questioned restructuring plans for the Consolidated Audit Trail, important for detecting insider buying and selling.

Staffing emerged as one other flashpoint, with Reuters data displaying the SEC misplaced fifteen to nineteen % of full-time workers in Enforcement, Trading and Markets, and Corporation Finance divisions over a number of weeks in May.

“We should assess the operational influence of the current mass exodus of senior profession workers,” Waters wrote, questioning whether or not the company maintains “human capital mandatory to perform its mission.“

Waters concluded by urging Hill to convene the listening to “as quickly as practicable when Congress returns,” asserting that “buyers, retirees, and dealing households deserve transparency and accountability” from the nation’s main securities regulator.

The publish Maxine Waters Demands SEC Hearing Over Dropped Crypto Cases appeared first on Cryptonews.

Similar Posts