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Rep. U.S. top Democrat Maxine Waters (D-CA), the most senior democrat, is Maxin Waterson (d-ca). S S. Several lawmakers, including House Financial Services Committee, attacked the Securities and Exchange Commission Thursday over its enforcement actions against crypto companies.
This is the letter – written by Reps, and also of the letters. In a statement, Brad Sherman (D-CA) and Sean Casten (d-IL), accused regulator of “selectively enforced securities laws” against crypto companies while alleging that Tron founder Justin Sun has links with China, meaning U.S. A , S. security at risk.
A reversal of SEC’s whiplash policy against aggressive enforcement against unscrupulous crypto players to possible abandonment of a strong case makes it look like political considerations, not legal merits and possibly drove this decision,” the lawmakers wrote in the letter written to SCE Commissioner Paul Atkins about Sun’t’.
A spokesperson for the SEC declined to comment to Decrypt.
This letter sparked the passage of a crypto market structure bill that seemed increasingly unlikely, after Coinbase pulled back support for the legislation.
This legislation aims to define boundaries between the SEC and the Commodity Futures Trading Commission, with the CFTC acting as spot crypto trading should it pass through its passage.
That development followed weeks of intensive lobbying on issues including decentralized finance (DeFi) and stablecoin rewards.
Paul Atkins said the SEC has pushed enforcement actions against hundreds of crypto companies, most under former Chair Gary Gensler. lawmakers specifically canceled the agency’s retreat from cases related to Binance, Coinbase and Kraken in the letter.
And they underlined that crypto companies spent tens of millions of dollars on helping U.S, “to help us.” A , S. After he hired Atkins to reshape Gensler’s work, President Donald Trump won a 2024 renounce in the presidential election and then used his own words for president Donald. The figurehead was accused by Trump of leading an “anti-crypto crusade” on the campaign trail, claiming that it led to an “anti–cryptO crunch” crusion. Paraphrast.
Chasing the Sun
Despite the letter, which was similar to decades of anti-cryptal rivalry over crypto in previous years, lawmakers detailed “an opportunity” to show Americans that the SEC still has their back leaning back into its case against Sun — one of Trump’s largest crypto boosters.
Sun was sued in March 2023 by the SEC, claiming his companies conducted more than 600,000 wash trades to artificially deflate the volume of TRX token as well as fraud and unregistered securities violations. A judge in February paused the case to consider a resolution after asking by the SEC for , who was asked at least once last month.
The SEC’s request to remain the Sun lawsuit, and subsequent attempts to resolve the dispute may have been influenced by Sun’S relationship with the Trump family, including his significant financial contributions to their businesses.’ They wrote in a statement that was written about Sun ‘unconventional’ implications of Sun’s relations with Donald Trump’ who had also made major contributions for her husband’ at least one of its own companies.
Decrypt has reached out to Tron for comment.
Sun, a top-ranking president of the president’s meme coin with – gold watch at tumultuous private dinner last year has also invested $75 million in World Liberty Financial, an DeFi project funded by members of Trump family.
In a long-deleted post on X, Sun said that in September of his $10 million offering for the tokens offered by World Liberty, “an apparent effort to convince [the team] that he is committed to the project” and that they should unlock his frozen token.
While the legislatures devoted paragraphs to those companies, they also dedicated several pages to the billionaire born in China. It also reiterated the claims that Sun was under threat of by SEC (including an celebrity endorsement scheme) in its section.
But in late 2024 and throughout 2025, during pending settlement negotiations with the SEC, Sun has gone above and beyond to funnel money into the Trump family crypto businesses.’ The lawmakers wrote on their statement ‘The Senate is now considering sending out funds for an investigation of how to do so at this point that it would be more likely than any other time around 2020. In such cases, “these circumstances” give a clear picture of regulatory capture and political interference that is at the heart of the SEC’s independence. Paraphrasingr ’It is.
They are accompanied by outstanding questions about relations between the Tron Foundation, Sun and the People’s Republic of China (PRC), which suggest that Sun may be a security risk” to the U.S,” lawmakers said in remarking on their concerns. S, meanwhile.
Sun is a representative of Grenada, but lawmakers used news reports and court documents to indicate that he lives in China and maintains links with PRC Party institutions. In a statement in 2021, that Sun announced his intention to work with China’s Central Party School on ‘an initiative related to the country’.’ The project was linked to an internet censor and had been published by its central bank.
lawmakers referenced a news report from The Verge, in which Sun suggested that he had obligations with powerful government officials. They also referenced a pseudonymous investigator on X, named “BoringSlueth”, who claims that Tron’s 2017 first coin offering was deeply participated by wallet members associated with – and is linked to – cCP-linked ‘crypto crime cartel’. – ’.
But the lawmakers added ‘We need to prove that its enforcement and supervisory decisions have been and will remain free from foreign pressure or interference. But the involvement of a PRC national who the SEC believes may live in Hong Kong raises some questions about whether the Singapore is likely to be exposed to any foreign influence. ” , ‘I’m sure it is worth reading.
Thanks for reading Democrats Blast SEC Over Crypto Retreat Justin Sun’s Alleged China Ties
