A US lawmaker has warned that the Securities and Exchange Commission is no longer acting as a strong enforcement authority on crypto under President Donald Trump’s administration.
Representative Stephen Lynch said the SEC has scaled back oversight by dropping cases against crypto firms and dismantling teams focused on fraud and digital asset expertise.
The comments came during a House Financial Services subcommittee hearing, highlighting growing divisions over how regulators should approach crypto innovation and enforcement.
“Related to crypto, there’s no cop on the beat,”
Lynch said, adding that the SEC has dropped most enforcement actions against firms previously accused of misconduct.
The shift follows the appointment of SEC Chair Paul Atkins, who has taken a different regulatory approach after replacing former chair Gary Gensler earlier this year.
At the same time, regulators are attempting to coordinate oversight, with the SEC and Commodity Futures Trading Commission signing an agreement to align on digital asset supervision.
Lawmakers are also working on broader legislation, including the proposed CLARITY Act, which could reshape crypto regulation by giving the CFTC a larger role in overseeing the market.