House Democrats led by Rep. Maxine Waters on Thursday accused the SEC of selectively enforcing crypto rules and questioned its recent retreat from major cases. According to the letter, lawmakers said the agency’s shift may reflect political, not legal, considerations and urged renewed action in the case against Justin Sun.
The lawmakers — including Reps. Brad Sherman and Sean Casten — highlighted the SEC’s pullback under Paul Atkins from suits involving Binance, Coinbase, and Kraken. “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,” they wrote.
They also tied the enforcement shift to recent political donations and business links between Sun and the Trump family. The letter noted Sun’s reported $75 million investment in World Liberty Financial and a since-deleted pledge to buy $10 million in the project’s tokens.
Lawmakers warned that Sun’s birthplace and reported ties to Chinese institutions could pose security concerns. They urged the SEC to show its decisions remain free from foreign influence and political interference.
The letter came as a crypto market structure bill faltered after Coinbase withdrew support, leaving jurisdictional questions between the SEC and the CFTC unresolved.
