House Democrats have accused the SEC of abandoning many high-profile investigations, including its legal battle with Ripple, which has brought attention back to the agency’s handling of crypto enforcement.
The claims, which were outlined in a January 15 letter to SEC Chair Paul Atkins, raised questions about why several cases were dropped after favorable court rulings and whether political relationships played any role in those decisions. However, according to crypto attorney Bill Morgan, these cases are wrapped up, done, and dusted.
Lawmakers Say SEC Walked Away From Major Crypto CasesAccording to the letter, companies whose cases or investigations were dismissed donated at least $1 million each to Trump’s inauguration. This raises concerns about an unmistakable inference of a pay-to-play scheme, investor protection and market integrity at a time when digital assets are starting to become deeply intertwined with capital markets.
According to the democrats, such circumstances could undermine public trust in the SEC’s independence. The Letter also seeks information related to the SEC’s knowledge of Sun’s ties to the People’s Republic of China and any CCP-affiliated persons or entities.
Crypto Lawyer Pushes Back On Ripple Lawsuit TalkMorgan dismissed the idea that the SEC could simply relaunch cases it has already litigated or closed on the same grounds, pointing to the legal doctrine of res judicata. Under that principle, once a matter has been conclusively decided between the same parties, it cannot be retried on identical issues.
Still, one unresolved question hangs over the broader controversy. Unlike the other crypto cases cited in the lawmakers’ letter, the SEC’s action against Justin Sun has not been formally dismissed and can be revisited anytime.
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