She added that the shift “raises troubling questions about the SEC’s priorities and effectiveness” and “puts both investors and the U.S. economy at risk.” The letter notes that since January 2025 the agency has dismissed or closed at least a dozen crypto-related cases, including actions against Binance, Coinbase, and Kraken, even after judges allowed key claims to proceed.
The letter also highlights the SEC’s decision to stay its civil enforcement case against Tron Foundation founder Justin Sun, calling the nearly yearlong pause a signal of selective enforcement. The lawmakers wrote: “The SEC’s request to stay the Sun case, which has now been in place for 11 months, signals to the market that securities laws are enforced selectively, and that those with sufficient political influence can evade accountability.”
“Your response to the Letter is essential to Congress’s ability to meet its constitutionally-mandated oversight obligations and deserves your immediate attention.”
FAQ ⏰ Why are lawmakers criticizing the SEC’s crypto enforcement strategy? They argue the SEC has dropped or paused major crypto cases, weakening investor protection and regulatory clarity. Which crypto companies were named in dismissed or closed SEC actions? The letter cites cases involving Binance, Coinbase, and Kraken. What concerns were raised about Justin Sun’s enforcement stay? Lawmakers say the prolonged pause suggests selective enforcement tied to political influence. What are lawmakers demanding from the SEC now? They want explanations, document preservation, and renewed action to restore confidence in crypto oversight.
