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Congress Presses SEC Chair on Crypto Enforcement Pullback as Justin Sun Case Remains on Hold

Atkins points to legal limits on public case details, offering confidential briefings instead.

Overview

  • House and Senate hearings this week featured Democrats pressing SEC Chair Paul Atkins about paused or dropped crypto cases and possible deference to firms tied to President Trump.
  • Lawmakers highlighted the stalled 2023 case against Justin Sun, which alleged more than 600,000 TRX wash trades, noting the court stay sought in 2025 and the lack of a public resolution.
  • Atkins declined to discuss individual matters, citing litigation restrictions, and said he would brief lawmakers privately within the rules.
  • SEC leadership defended a move away from regulation-by-enforcement toward joint rulemaking with the CFTC aligned to the House-passed Clarity Act framework.
  • New public claims from a woman identifying herself as Sun’s ex-girlfriend were reported to the SEC, adding pressure as Sun denied the allegations.