Senator Richard Blumenthal (D-CT) is pressing the U.S. Securities and Exchange Commission for answers about whether individuals and companies tied to President Donald Trump’s cryptocurrency ventures received preferential treatment from regulators.
Bluenthal’s letter also questioned the departure of Margaret Ryan, who had served only six months as director of the SEC’s Division of Enforcement before leaving the agency.
“Ms. Ryan’s abrupt departure from the agency raises questions in light of her short tenure and reports that senior leadership intervened to prohibit the Division of Enforcement from pursuing cases against certain cryptocurrency companies,” Blumenthal wrote. “Indeed, on March 5, 2026, approximately 11 days before Ms. Ryan stepped down from her position, the SEC dismissed fraud charges against Mr. Sun and several of his companies after he agreed to pay a $10 million fine.”
Blumenthal asked the SEC to provide the requested records to the Senate Permanent Subcommittee on Investigations by April 13, and to include any documents related to Zhao's case as well. The senator is also seeking records of contacts between the chairman’s office and members of the Trump or Witkoff families regarding cryptocurrency businesses.
“People are losing trust,” Rep. Stephen Lynch (D-MA) told Atkins during a hearing before the House Financial Services Committee. “This is not good for crypto, it’s certainly not good for consumers. The reputational damage the SEC is suffering right now.”
The office of Senator Blumenthal did not immediately respond to Decrypt's request for comment.
