-640x358.jpg&w=1200&q=75)
Senior House Democrats have criticised the Securities and Exchange Commission over what they described as inconsistent enforcement against crypto firms.
The letter was led by Representative Maxine Waters and co-signed by Representatives Brad Sherman and Sean Casten.
Lawmakers accused the SEC of selectively applying securities laws while retreating from several high-profile crypto cases.
“The SEC’s whiplash policy reversal from vigorous enforcement against unscrupulous crypto players to possible abandonment of a strong case creates the appearance that political considerations, not legal merits, potentially drove this decision,”
The lawmakers said.
The criticism comes as a proposed crypto market structure bill appears unlikely to advance after Coinbase withdrew its support.
The bill aimed to clarify oversight responsibilities between the SEC and the Commodity Futures Trading Commission.
Lawmakers highlighted the SEC’s decision to pause litigation against Tron founder Justin Sun as a key concern.
The SEC previously accused Sun and his companies of wash trading, fraud, and unregistered securities violations linked to the TRX token.
“The SEC’s request to stay the Sun litigation may have been unduly influenced by Sun’s relationship with the Trump family,”
The lawmakers said.
The letter alleged that Sun directed large sums towards Trump-linked crypto ventures during settlement discussions.
Lawmakers also raised concerns over Sun’s alleged ties to China and potential national security implications.
“These circumstances create a clear appearance of regulatory capture and political interference that strikes at the heart of the SEC’s independence,”
The lawmakers said.
The SEC declined to comment on the letter or the allegations raised by Democratic lawmakers.
At the time of reporting, TRON price was $0.3113.