Democratic lawmakers question SEC chairman, focusing on reduced crypto enforcement and potential political connections

Odaily reported that during a hearing of the U.S. House Financial Services Committee, several Democratic lawmakers questioned SEC Chairman Paul Atkins about the recent reduction in enforcement actions against the crypto industry by the U.S. Securities and Exchange Commission (SEC). They also expressed concerns about whether these decisions were linked to Trump and his connections to the crypto industry.

The lawmakers specifically highlighted the SEC's suspension of the case against Tron founder Justin Sun and the dismissal of the lawsuit against Binance. Democratic Congressman Stephen Lynch stated at the hearing that the decline in SEC enforcement has already impacted the agency's reputation and demanded an explanation for why these cases were not pursued further.

The SEC had previously sued Justin Sun in 2023 for alleged unregistered securities offerings and market manipulation, then filed to stay the case in 2025 to explore settlement possibilities. In May of the same year, under Atkins' leadership, the SEC dismissed its lawsuit against Binance. Data shows that in 2025, the SEC's overall enforcement actions decreased by approximately 30% compared to the previous year, with crypto-related cases dropping by about 60%. This is seen by external observers as a signal of a shift in regulatory priorities.

In response, Atkins stated that the SEC maintains "robust enforcement efforts" and attributed some of the changes to normal adjustments following a change in regulatory leadership.