Democratic lawmakers questioned the SEC chairman, raising concerns about declining crypto enforcement and potential political connections.

At a hearing before the U.S. House Financial Services Committee, several Democratic lawmakers questioned SEC Chairman Paul Atkins about the Securities and Exchange Commission's (SEC) recent reduction in enforcement actions against the crypto industry, expressing concerns about whether the decision was linked to Trump and the crypto industry. Lawmakers highlighted the SEC's suspension of the case against Tron founder Justin Sun and the withdrawal of its lawsuit against Binance. Democratic Representative Stephen Lynch stated at the hearing that the SEC's reduced enforcement has damaged the institution's reputation and demanded an explanation for why the cases were not pursued further. The SEC previously sued Justin Sun in 2023 for alleged unregistered securities offerings and manipulation of trading volume, then applied for a stay of proceedings in 2025 to explore settlement possibilities; in May of the same year, the SEC withdrew its lawsuit against Binance during Atkins' tenure. Data shows that in 2025, the SEC's overall enforcement actions decreased by approximately 30% compared to the previous year, with crypto-related cases decreasing by approximately 60%, seen as a signal of a shift in regulatory focus. In its response, Atkins stated that the SEC maintains a "strong enforcement approach" and that some of the changes are normal adjustments following a change in regulatory leadership.