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

Odaily News: During a hearing of the U.S. House Financial Services Committee, several Democratic lawmakers questioned SEC Chair Paul Atkins regarding the recent reduction in enforcement actions against the cryptocurrency industry by the U.S. Securities and Exchange Commission (SEC). They also expressed concerns about whether these decisions are connected to Trump and his ties 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 Representative Stephen Lynch stated during 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 sued Justin Sun in 2023 for alleged unregistered securities offerings and market manipulation, later filing to pause 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, overall SEC enforcement actions decreased by approximately 30% compared to the previous year, with crypto-related cases dropping by about 60%, which is seen by observers as a signal of a shift in regulatory priorities.

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