House Democrats accuse SEC Chair Paul Atkins of undermining trust in crypto oversight

House Democrats sharply criticized SEC Chair Paul Atkins during a Wednesday hearing, accusing him of ignoring crypto misconduct tied to President Donald Trump and damaging confidence in both the regulator and the digital asset industry.

Speaking before the House Financial Services Committee, Rep. Stephen Lynch (D-MA) said the SEC’s recent actions have eroded public trust. He pointed to the agency’s dismissal of several high-profile crypto lawsuits, including its case against Binance, which has reportedly played a key role in supporting the growth of the Trump family’s crypto venture, World Liberty Financial.

The SEC previously dropped its lawsuit against Binance, and President Donald Trump pardoned Binance founder Changpeng Zhao in October. Zhao had pleaded guilty to violating U.S. anti-money laundering laws and served four months in prison.

Rep. Maxine Waters (D-CA) also criticized the SEC’s decision to indefinitely pause its lawsuit against Tron founder Justin Sun. The case had accused Sun of offering unregistered securities and manipulating the price of TRX through extensive wash trading. The pause came months after Sun purchased $75 million worth of the Trump family’s WLFI token.

Sun was also among the largest holders of Trump’s meme coin, which granted him access to a private dinner with the president last spring. More recently, a woman identifying herself as Sun’s former girlfriend claimed she possesses evidence of insider trading and market manipulation involving Sun, allegations she said were reported to the SEC. Sun has denied the claims.

When pressed during the hearing on whether the SEC would reopen the case or investigate the new allegations, Atkins declined to comment on specific enforcement matters.