A bunch of Democratic lawmakers has sharply criticized the Securities and Change Fee (SEC) for what they describe as a dramatic retreat from imposing U.S. securities legal guidelines towards main cryptocurrency companies, warning that the transfer threatens buyers and market integrity.
Abstract
- Ongoing litigation towards Binance, Coinbase, Kraken and others abruptly ended after Trump was elected.
- The timing of the closures raises questions on political affect, Dems argue.
- The letter particularly mentions Justin Solar, whose SEC case stays paused whereas he invests tens of millions in Trump-linked crypto ventures.
In a letter to SEC Chairman Paul Atkins, Democratic Representatives Maxine Waters, Sean Casten, and Brad Sherman criticized the SEC for abruptly dropping no less than a dozen crypto enforcement circumstances since early 2025.
Basically, since Trump’s inauguration, the Fee has dismissed or closed no less than a dozen high-profile crypto circumstances, together with ongoing litigation towards Binance, Coinbase, and Kraken—regardless of favorable courtroom rulings supporting the SEC’s allegations of fraud and unregistered securities choices. For instance, the SEC had efficiently defeated motions to dismiss claims towards Binance and Coinbase, but voluntarily dropped these circumstances, citing regulatory discretion relatively than authorized advantage.
The Democrats argue that the timing of the closures raises questions on political affect, noting that many crypto firms concerned—together with Coinbase, Kraken, Ripple, Robinhood, and Crypto.com—donated tens of millions to former President Trump’s marketing campaign and inauguration.
Justin Solar will get singled out
The letter particularly mentions Justin Solar, founding father of the Tron Basis, whose SEC case stays paused whereas he continues investing tens of millions in Trump-linked crypto ventures. Lawmakers categorical concern that Solar’s ties to China and the Chinese language Communist Occasion may amplify dangers to U.S. market integrity.
Lawmakers urge the SEC to raise the keep on Solar’s case or negotiate a settlement reflecting the energy of the SEC’s claims. In addition they request paperwork and communications concerning the SEC’s decision-making course of and any potential political or international affect on enforcement actions.
The letter underscores a rising stress over the SEC’s position in regulating cryptocurrencies and defending U.S. buyers amid a quickly evolving, politically charged digital asset market. Waters continued:
The SEC’s whiplash coverage reversal—from vigorous enforcement towards unscrupulous crypto gamers to potential abandonment of a robust case—creates the looks that political issues, not authorized deserves, probably drove this determination. The American public should know whether or not the SEC’s independence has been compromised and whether or not justice in our markets has been subordinated to political pursuits. I subsequently demand solutions from you.
Waters, who leads Home Monetary Companies Democrats, may probably chair the committee if her celebration retakes the Home in 2026.
