Lawmakers raise concerns after dismissal of major crypto cases and changes in regulatory approach
US Representative Maxine Waters has formally demanded an oversight hearing with the Securities and Exchange Commission (SEC), citing growing concerns over the agency’s recent handling of crypto-related enforcement. The request follows the SEC’s decision to drop or pause several high-profile cases involving major digital asset firms, sparking debate over regulatory consistency and investor protection.
Concerns Over Dropped Crypto Enforcement Actions
In a letter sent to the chair of the House Financial Services Committee, Waters argued that congressional oversight of the SEC has been insufficient amid what she described as “rapid, significant, and questionable policy changes.” She highlighted the agency’s dismissal or suspension of enforcement actions against major crypto entities, including Coinbase, Binance, and crypto entrepreneur Justin Sun.
Waters emphasized that some enforcement actions appeared to be halted publicly before formal votes were completed, raising questions about internal processes and transparency. She warned that such actions could weaken deterrence against fraud and market manipulation in digital asset markets.
Questions Around SEC Independence and Market Oversight
The proposed hearing would address 10 key issues, including concerns over politicization of the SEC, reduced market surveillance, and the agency’s independence. Waters stressed that Congress has a responsibility to understand how the regulator plans to uphold securities laws while crypto markets continue to expand.
Shift in Regulatory Tone Under New Leadership
The SEC’s current leadership has taken a notably more open stance toward crypto, shelving lawsuits, easing rules around crypto exchange-traded products, and signaling interest in clearer regulatory frameworks. Supporters argue this approach fosters innovation, while critics fear it may lower safeguards against fraud.
Waters has consistently voiced skepticism toward crypto-friendly legislation, warning that weaker oversight could “open the floodgates to massive fraud and financial harm.” Her latest call for a hearing underscores ongoing political divisions over how digital assets should be regulated in the United States.
Disclaimer
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