SEC Head Defends Enforcement Changes Amid Justin Sun Case Questions
U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins is going through scrutiny from lawmakers because the company strikes to reshape its cryptocurrency regulatory framework.
Democrats are questioning potential hyperlinks between trade actors and President Donald Trump amid a broader decline in enforcement actions.
SEC Scrutinized Over Tron Case
During a House Financial Services Committee listening to, Democratic members zeroed in on the SEC’s choice to pause its case towards Tron founder Justin Sun. Representative Maxine Waters pointed to what she described as a sweeping rollback of prior crypto enforcement actions after Trump entered the White House and new SEC management took over final yr.
Waters referenced the regulator’s 2023 lawsuit towards Sun, during which he was accused of organizing the unregistered sale of crypto securities tied to the TRX and BTT tokens and manipulating buying and selling volumes.
Later in February 2025, the SEC requested the federal courtroom overseeing the case to problem a keep, which paused the proceedings. Since that call, Sun has develop into a significant monetary supporter of Trump-linked crypto ventures, purchasing billions of WLFI tokens, making him the biggest backer of World Liberty Financial.
Waters additionally highlighted a more moderen declare by his alleged former girlfriend, who publicly instructed she possesses proof of TRX manipulation.
Atkins declined to handle specifics of the case, telling lawmakers he couldn’t touch upon particular person enforcement issues. He added that he could be open to additional dialogue in a confidential setting “to the extent the foundations permit me to do this.”
When requested whether or not the company ever acts to guard traders in ways in which may negatively have an effect on Trump-affiliated companies, he responded, “As far as what the Trump household does or not, I can’t communicate to that.”
Trump’s Ties to Binance
Lawmakers additionally raised issues about different high-profile litigation the SEC dropped final yr, together with circumstances towards Binance, Ripple, Coinbase, Kraken, and Robinhood.
In May 2025, the monetary watchdog ended its lawsuit towards Binance, which it had sued in 2023 for providing unlicensed providers and misrepresenting buying and selling controls. Trump later additionally pardoned Zhao, whereas a stablecoin issued by WLF was used by an Abu Dhabi funding agency for a $2 billion funding in Binance.
“Explain to me how this occurs with none enforcement motion,” Representative Stephen Lynch mentioned. “The reputational harm that the SEC is struggling proper now’s unbelievable. And you’re within the seat, sir. It’s your accountability. I’m simply asking for a proof.”
The SEC Chair defended the regulator, saying it has a “strong enforcement effort” and continues to deliver circumstances. However, information from Cornerstone Research shows that its general authorized actions fell 30% in 2025, whereas crypto-related circumstances dropped 60%.
Atkins, who turned the group’s chair in April 2025 after Gary Gensler’s departure, is thought for criticizing the earlier aggressive method and framing his management as a transfer away from litigation-heavy techniques.
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