SEC’s Atkins Grilled on Crypto Enforcement Pullback as Justin Sun Case Draws Congressional Scrutiny

TLDR: SEC paused Justin Sun’s wash trading case in 2023 while exploring resolution, raising conflict concerns over Trump ties Atkins offered lawmakers confidential briefing on Sun case but cited regulatory restrictions on public discussions SEC dropped major enforcement actions against Binance, Ripple, Coinbase, rejecting previous regulation-by-enforcement approach Atkins confirmed SEC and CFTC are developing joint crypto rules aligned with House-passed Clarity Act framework SEC Chairman Paul Atkins faced intense scrutiny from House lawmakers regarding the agency’s shift in cryptocurrency enforcement policies. During Wednesday’s oversight hearing before the House Financial Services Committee, Democrats questioned the regulatory pullback on major crypto cases, particularly involving Tron founder Justin Sun. Atkins defended the agency’s new direction while promising clearer regulations for the digital asset industry through collaboration with the CFTC. Sun Case Raises Questions About Enforcement Priorities Representative Maxine Waters, the committee’s ranking Democrat, pressed Atkins on the agency’s handling of the Justin Sun investigation. The SEC had accused Sun in 2023 of orchestrating wash trading schemes involving over 600,000 fraudulent transactions to inflate TRX token volumes. However, the agency paused the case last year while exploring potential resolution options. Waters highlighted Sun’s connections to President Trump’s family through World Liberty Financial Inc. “Well, while you were exploring a potential resolution, Mr. Sun has been busy ingratiating himself within Trump’s orbit,” Waters said to Atkins during the hearing. SEC Chairman Paul Atkins addressed concerns over the agency’s crypto enforcement, particularly regarding Justin Sun and his ties to the Trump family. He stated that due to regulatory restrictions, he couldn't discuss specific cases but was open to a confidential briefing. Atkins… — Wu Blockchain (@WuBlockchain) February 12, 2026 She ...