Senator Questions SEC Over Treatment of Trump-Linked Crypto Businesses

Senator Richard Blumenthal (D-CT) is pressing the U.S. Securities and Exchange Commission for answers astir whether individuals and companies tied to President Donald Trump’s cryptocurrency ventures received preferential attraction from regulators.

In a letter to SEC Chairman Paul Atkins connected Monday, Blumenthal requested records and communications related to enforcement decisions involving cryptocurrency firms, including companies linked to Tron laminitis Justin Sun, aft the bureau dismissed fraud charges against Sun and respective of his companies earlier this period successful a colony that included a $10 cardinal civilian penalty.

Bluenthal’s missive besides questioned the departure of Margaret Ryan, who had served lone six months arsenic manager of the SEC’s Division of Enforcement earlier leaving the agency.

“Ms. Ryan’s abrupt departure from the bureau raises questions successful airy of her abbreviated tenure and reports that elder enactment intervened to prohibit the Division of Enforcement from pursuing cases against definite cryptocurrency companies,” Blumenthal wrote. “Indeed, connected March 5, 2026, astir 11 days earlier Ms. Ryan stepped down from her position, the SEC dismissed fraud charges against Mr. Sun and respective of his companies aft helium agreed to wage a $10 cardinal fine.”

In March 2023, the SEC charged Sun and his companies with securities violations. Charges were besides filed against respective influencers, Jake Paul, Lindsay Lohan, Aliaune “Akon” Thiam, and big movie prima Michelle "Kendra Lust" Mason, for not disclosing they were paid to beforehand Tron-related cryptocurrency tokens.

“Facing national prosecution, Mr. Sun began to bargain into President Trump’s cryptocurrency ventures, archetypal by purchasing millions of dollars worthy of the President’s memecoin, $TRUMP, which made Sun its largest holder and entitled him to a backstage meal with the President,” Blumenthal wrote. “Mr. Sun and his firms past went connected to go an aboriginal capitalist successful the Trump family’s larger cryptocurrency venture, World Liberty Financial (WLFI), providing tens of millions successful enactment to WLFI’s governance token and its stablecoin, USD1.”

Blumenthal’s missive comes aft the SEC ended aggregate high-profile cases primitively brought during the Joe Biden administration. The bureau closed its suit against Coinbase successful February 2025, moved to disregard its lawsuit against Binance and laminitis Changpeng “CZ” Zhao successful May 2025, and ended appeals successful its long-running quality with Ripple implicit XRP successful August 2025. At the aforesaid time, Trump has granted clemency to respective salient figures successful the cryptocurrency industry, including CZ and BitMEX laminitis Arthur Hayes.

Blumenthal asked the SEC to supply the requested records to the Senate Permanent Subcommittee connected Investigations by April 13, and to see immoderate documents related to Zhao's lawsuit arsenic well. The legislator is besides seeking records of contacts betwixt the chairman’s bureau and members of the Trump oregon Witkoff families regarding cryptocurrency businesses.

Blumenthal’s petition adds further disapproval from Democratic lawmakers implicit the SEC’s attack to crypto enforcement since Trump returned to office.

In January, House Democrats, including Representatives Maxine Waters, Brad Sherman, and Sean Casten, warned that the agency’s retreat from enforcement actions raised concerns astir governmental power implicit regulatory decisions. This was followed successful February, erstwhile Democratic lawmakers criticized Atkins for easing enforcement against Binance and Justin Sun, accusing the SEC of enabling reputational harm and undermining marketplace integrity.

“People are losing trust,” Rep. Stephen Lynch (D-MA) told Atkins during a proceeding earlier the House Financial Services Committee. “This is not bully for crypto, it’s surely not bully for consumers. The reputational harm the SEC is suffering close now.”

The bureau of Senator Blumenthal did not instantly respond to Decrypt's petition for comment.