US Securities and Exchange Commission Chair Paul Atkins faced sharp questioning from Democratic lawmakers during a House Financial Services Committee hearing, as concerns mounted over a significant drop in crypto-related enforcement actions under the current administration.
SEC Crypto Enforcement Actions Drop 60%
Representative Stephen Lynch of Massachusetts said enforcement actions have fallen by roughly 60% since President Donald Trump took office and appointed Atkins to lead the agency. Lynch pointed to the SEC’s decision to dismiss several high-profile lawsuits, including its case against Binance in May 2025, as evidence of a broader regulatory pullback.
Lawmakers also raised concerns about foreign investment activity linked to World Liberty Financial, a decentralized finance platform reportedly associated with the Trump family. Lynch referenced reports that an Abu Dhabi-backed investment vehicle acquired a 49% stake in the startup behind the project, questioning the potential national security implications.
Political Tensions Over Crypto Oversight
Representative Maxine Waters argued that several dismissed cases were legally sound and suggested that political considerations may have influenced enforcement decisions. She also cited financial contributions from crypto executives to Trump-affiliated entities as a source of concern.
Atkins defended the agency’s record, stating that the SEC continues to pursue a “robust enforcement effort.” The debate highlights deepening partisan divisions over crypto regulation ahead of the midterm elections, with potential implications for pending digital asset legislation.
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