{"id":6575,"date":"2026-02-12T06:36:40","date_gmt":"2026-02-12T06:36:40","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6575"},"modified":"2026-02-12T06:36:40","modified_gmt":"2026-02-12T06:36:40","slug":"lawmakers-grill-sec-chair-over-crypto-enforcement-pullback-and-trump-ties","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6575","title":{"rendered":"Lawmakers Grill SEC Chair Over Crypto Enforcement Pullback and Trump Ties"},"content":{"rendered":"

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  • Representative Maxine Waters questioned the SEC\u2019s decision to pause its fraud case against Justin Sun, suggesting a \u201cpay-to-play\u201d link to his US$75 million investment in Trump-affiliated crypto projects.<\/span><\/li>\n
  • SEC Chairman Paul Atkins refused to discuss the specific case but confirmed the agency is shifting away from \u201cregulation-by-enforcement\u201d to focus on \u201creal fraud\u201d involving securities.<\/span><\/li>\n
  • The probe involves allegations that Sun used 600,000 wash trades to manipulate token prices, a case that remains unresolved 11 months after the SEC first requested a stay.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    Democrats challenged SEC Chair Paul Atkins on Wednesday over why the agency\u2019s case against Tron founder Justin Sun has stalled, and whether Sun\u2019s links to President Donald Trump matter.<\/p>\n

    In a Wednesday hearing, Rep. Maxine Waters, the ranking Democrat on the House Financial Services Committee, focused on the SEC\u2019s 2023 allegations that Sun and his companies manipulated TRX markets, including claims his staff ran more than 600,000 wash trades to inflate trading activity.\u00a0<\/p>\n

    The SEC asked a court to pause the case about a year ago while it explored a settlement. No settlement has been announced.<\/p>\n

    Waters said Sun has since moved closer to Trump\u2019s orbit through ties to the Trump-linked crypto venture World Liberty Financial, and asked whether politics is affecting enforcement. She also pointed to a recent public claim by an alleged former girlfriend of Sun, who said she had evidence of TRX manipulation.<\/p>\n

    Atkins said he could not discuss specific cases in public but offered to brief lawmakers privately if rules allow. Pressed on whether his \u201creal fraud\u201d focus includes crypto, he said the SEC will act on \u201cwhatever involves securities.\u201d<\/p>\n

    Related: Fed\u2019s Waller Eyes \u2018Skinny\u2019 Master Account by Year-End as Crypto Hype Cools<\/strong><\/p>\n

    Trump\u2019s Questionable Crypto Ventures<\/h2>\n

    The hearing also revisited the SEC\u2019s broader retreat from crypto cases under new leadership.\u00a0<\/p>\n

    Democrats cited dropped or wound-down actions involving firms including Binance, Ripple, Coinbase, Kraken and Robinhood. The SEC\u2019s new leadership has criticised the prior approach as \u201cregulation by enforcement.\u201d<\/p>\n

    Democrats tied the issue to Trump\u2019s growing crypto interests. Bloomberg has estimated Trump has made about US$1.4 billion (AU$2.14 billion) from crypto ventures, and the Trump family holds a 20% stake in mining firm American Bitcoin.<\/p>\n

    Trump recently nominated Kevin Warsh as Fed Chair to succeed Jerome Powell when his term expires in May of this year.<\/p>\n

    Related: Jump Trading Bets Big on Prediction Markets With Stakes in Kalshi and Polymarket<\/strong><\/p>\n<\/p><\/div>\n

    Justin Sun,Law,SEC#Lawmakers #Grill #SEC #Chair #Crypto #Enforcement #Pullback #Trump #Ties1770878200<\/p>\n","protected":false},"excerpt":{"rendered":"

    Representative Maxine Waters questioned the SEC\u2019s decision to pause its fraud case against Justin Sun, suggesting a \u201cpay-to-play\u201d link to his US$75 million investment in Trump-affiliated crypto projects. SEC Chairman Paul Atkins refused to discuss the specific case but confirmed the agency is shifting away from \u201cregulation-by-enforcement\u201d to focus on \u201creal fraud\u201d involving securities. The<\/p>\n","protected":false},"author":1,"featured_media":6576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[1183,62,1267,2427,217,2428,517,2173,283],"class_list":{"0":"post-6575","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-chair","9":"tag-crypto","10":"tag-enforcement","11":"tag-grill","12":"tag-lawmakers","13":"tag-pullback","14":"tag-sec","15":"tag-ties","16":"tag-trump"},"yoast_head":"\nLawmakers Grill SEC Chair Over Crypto Enforcement Pullback and Trump Ties - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=6575\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lawmakers Grill SEC Chair Over Crypto Enforcement Pullback and Trump Ties\" \/>\n<meta property=\"og:description\" content=\"Representative Maxine Waters questioned the SEC\u2019s decision to pause its fraud case against Justin Sun, suggesting a \u201cpay-to-play\u201d link to his US$75 million investment in Trump-affiliated crypto projects. 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