Senior Democratic lawmakers criticised the U.S. Securities and Exchange Commission on Thursday over what they described as inconsistent enforcement of securities laws against cryptocurrency firms, raising concerns that political considerations may be influencing regulatory decisions.
Representative Maxine Waters of California, the top Democrat on the House Financial Services Committee, joined Reps. Brad Sherman and Sean Casten in a letter accusing the SEC of selectively targeting crypto companies while easing its stance in certain high-profile cases.
The lawmakers pointed specifically to the case involving Tron founder Justin Sun, alleging his ties to China could pose risks to U.S. national security. In the letter addressed to SEC Commissioner Paul Atkins, they said the regulator’s apparent shift away from aggressive enforcement created doubts about the integrity of its decision-making.
“The SEC’s whiplash policy reversal from vigorous enforcement against unscrupulous crypto players to possible abandonment of a strong case creates the appearance that political considerations, not legal merits, potentially drove this decision,” the lawmakers wrote.
An SEC spokesperson declined to comment.
The letter comes as prospects dim for a long-debated crypto market structure bill after Coinbase withdrew its support. The proposed legislation would clarify regulatory boundaries between the SEC and the Commodity Futures Trading Commission, assigning the CFTC authority over spot crypto trading if enacted.
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