Following the postponement of a Senate Banking Committee markup on risky crypto legislation scheduled for this week, today Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, Congressman Sean Casten (D-IL), Vice Ranking Member on the Committee, and Congressman Brad Sherman (D-CA), Ranking Member on the Capital Markets Subcommittee, sent a letter to Securities and Exchange Commission (SEC) Chairman Paul S. Atkins. The letter raises serious concerns about the SEC’s significant pullback from its responsibility to investigate and pursue enforcement actions involving crypto assets that may violate federal securities laws and put everyday investors at risk. The letter also encourages the SEC to pursue its enforcement action against the Tron Foundation founder, Justin Sun, after the SEC stayed its action following Sun’s investment of over $75 million in Trump family crypto projects, including the World Liberty Financial token ($WLFI) and Trump Coin ($TRUMP).

Since January 2025, the SEC has dismissed or closed at least a dozen crypto-related enforcement actions, including strong cases against Binance, Coinbase, and Kraken, despite previously securing favorable court rulings, raising alarm about the agency’s priorities and its commitment to protecting investors and the broader U.S. economy. The lawmakers warn that the SEC’s retreat from investigating and prosecuting potential violations involving crypto assets is undermining investor confidence and raising questions about whether political influence is shaping enforcement decisions. They note that these actions come amid significant political spending by crypto companies with ties to President Trump, his family, and his inner circle.

“We write to express my deep concern regarding the Securities and Exchange Commission’s (SEC) dramatic retrenchment from its responsibility to investigate and prosecute cases involving crypto asset securities—activities that appear to be violations of current securities laws and regulations,” wrote the lawmakers. “Given the industry’s history of investor-harm and the clear mandate of the securities laws to protect market participants, this turn raises troubling questions about the SEC’s priorities and effectiveness. Frankly, it puts both investors and the U.S. economy at risk.” The lawmakers added, “...The SEC’s request to stay the Sun case, which has now been in place for 11 months, signals to the market that securities laws are enforced selectively, and that those with sufficient political influence can evade accountability. This outcome betrays both the SEC’s statutory mission and the investors who rely on its protection. We therefore ask that the SEC seek to lift the stay of the Sun case or negotiate a settlement that obtains financial and equitable relief for harmed investors similar to that it could have obtained had it obtained a favorable judgment in the case.”

The letter tees up a series of requests, made by a separate letter to Chairman Atkins, to preserve and produce documents and information related to its crypto enforcement program, including the Sun case, Sun’s relationship to the Trump Administration, and his ties with the People’s Republic of China.

Read the full letter here.

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