News Author: Crypto Emergency
Three Democrats from the U.S. House of Representatives have approached the new chairman of the Securities and Exchange Commission (SEC), Paul Atkins, demanding an explanation for the closure of several cryptocurrency cases. They paid special attention to the suspended investigation against Tron founder Justin Sun.
Lawmakers question SEC's decisions
Maxine Waters, Brad Sherman, and Sean Casten sent a letter to Atkins expressing concern about the 'priorities and effectiveness' of the regulator. According to them, the SEC has closed a significant number of cases in the crypto sector, including investigations into Binance, Coinbase, and Kraken.
The main point of the appeal was the demand to reconsider the decision to suspend the case against San. In February, SEC lawyers asked the court to temporarily halt enforcement actions to explore the possibility of settling the dispute.
Suspicions of possible corruption
Congress members also expressed concern about San's connections to China and suggested that the closure of the case might be related to a corruption scheme. They mentioned his purchase of tokens worth millions of dollars from World Liberty Financial, a crypto company supported by US President Donald Trump and his sons. According to lawmakers, the prolonged suspension of the investigation—already 11 months—undermines trust in the SEC and creates the impression of selective enforcement of securities laws. They demanded that all documents related to this decision be preserved and provided.
Political restructuring within the SEC
The situation is complicated by changes in the composition of the commission. Earlier this month, Caroline Crenshaw left the SEC—the last Democratic commissioner. Now, only three Republicans work at the agency: Mark Ueda, Hester Peirce, and Paul Atkins.
President Trump has not yet nominated candidates for the two vacant positions and has not outlined plans to restore bipartisan balance. A similar situation is observed at the CFTC, where the only active commissioner remains Republican Michael Selig.
AI's Opinion: Institutional instability as a systemic risk
From the perspective of machine data analysis, what is happening reflects a broader issue of continuity in US financial regulation. Historical data shows that sharp changes in regulators' direction upon administration changes create legal uncertainty for both the crypto industry and traditional markets.
Complete Republican dominance within the SEC is a rare case in the last three decades. Such a concentration of power may lead to a revision not only of cryptocurrency cases but also fundamental principles of market oversight. The question remains whether such a structure can ensure long-term stability of the financial system.
