On February 12, it was reported that in a congressional hearing, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins faced sharp questioning from Democratic lawmakers, focusing on the agency’s suspension of enforcement actions against Tron founder Justin Sun. Legislators believe that this decision may not be solely about compliance considerations but could involve more complex political and financial interests.
The core of the controversy lies in the fact that Justin Sun has invested over $75 million in crypto projects related to the Trump family, including World Liberty Financial, and has appeared publicly alongside Eric Trump. These backgrounds have led some lawmakers to worry that the SEC’s enforcement impartiality is being tested, and they have demanded that Atkins explain the true reasons behind the suspension.
In response to the questions, Atkins refused to comment on specific cases, stating that regulatory rules do not permit disclosure of ongoing investigations or enforcement suspensions. He emphasized that all SEC decisions are based on law and facts, not external pressure. He also expressed willingness to provide confidential explanations to lawmakers in a closed-door meeting but did not confirm whether the case would be resumed.
During the hearing, Atkins also discussed the direction of the U.S. cryptocurrency regulatory framework. He pointed out that the SEC is collaborating with the Commodity Futures Trading Commission (CFTC) to advance the “Clear Act,” which aims to clearly distinguish digital commodities from digital securities, with some regulatory responsibilities potentially shifting to the CFTC. Supporters believe this move could reduce market uncertainty and help companies better understand compliance boundaries; opponents worry it might weaken investor protections.
The suspension of enforcement and the push for new legislation are seen as significant signals of a strategic shift in U.S. cryptocurrency regulation toward 2026. Policy is moving from aggressive enforcement to a focus on clearer rules and institutional coordination. However, doubts about political connections remain, and Congress will continue to monitor developments. The SEC’s next steps will not only impact the digital asset market but also influence the credibility of U.S. financial regulation.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
SEC and CFTC Propose Raising Private Fund Reporting Threshold to $1 Billion
The SEC and CFTC propose to reduce hedge fund reporting requirements by exempting smaller advisors and increasing the asset threshold for Form PF from $150 million to $1 billion, with data used confidentially for oversight.
GateNews2h ago
Hong Kong SFC Launches Pilot Framework for Secondary Trading of Tokenised Investment Products
Hong Kong's SFC launched a pilot framework for secondary trading of tokenised investment products on licensed platforms, enhancing retail access and blockchain settlement. The framework includes investor protection measures and aims to expand the tokenised products market.
GateNews5h ago
Hong Kong SFC issues two tokenized offering circulars on the same day (26EC22 / 26EC23): Full breakdown of VATP secondary trading and primary subscription and redemption rules
The Hong Kong Securities and Futures Commission will issue two guidance circulars for tokenized products in 2026, covering primary-market subscription and redemption and secondary-market trading requirements, respectively. The circulars will clearly define the responsibilities of product providers, liquidity requirements, and fair pricing mechanisms. The new regulatory framework will affect how the industry operates and will create new business opportunities for compliance lawyers, forming a template for tokenized finance regulation in the Asia-Pacific region.
ChainNewsAbmedia6h ago
Hong Kong SFC prepares the world’s first tokenized assets trading framework for VATP: money market funds to lead the way, gradually expanding to all authorized products
The Hong Kong Securities and Futures Commission will publish a framework in April 2026 that will allow licensed virtual asset trading platforms to conduct secondary-market transactions of tokenized assets, with the first batch including money market funds and future expansion to stocks, bonds, and more. This will make Hong Kong the first market to use Web3 infrastructure, and it will advance in step with the regulatory technology “CrypTech” to establish a regulatory template for tokenized finance. The move is intended to secure Hong Kong’s position as an Asia-Pacific digital-asset hub and to create competitive pressure on Taiwan-based industry players.
ChainNewsAbmedia6h ago
BIS calls for globally coordinated stablecoin regulation: warns that Tether and Circle account for 85% of those showing “security-like characteristics”
The Bank for International Settlements (BIS) once again emphasized the importance of global stablecoin regulatory coordination, pointing out three major risks that stablecoins face at this stage, including regulatory challenges related to cross-border flows and issues with market concentration. BIS proposed a unified ledger framework and argued that central banks need to lead the development of digital currencies, which would pose challenges to existing stablecoin issuers such as Tether and Circle. Overall, in the future, stablecoins may face a more stringent regulatory framework.
ChainNewsAbmedia8h ago
Hong Kong SFC Approves New Framework for Trading Tokenized Investment Products
Hong Kong's SFC introduced a regulatory framework for trading tokenized investment products, enabling secondary market trading on licensed virtual asset platforms and enhancing access for retail investors.
GateNews9h ago
