- Connecticut Senator Richard Blumenthal has formally requested records from the Securities and Exchange Commission to probe potential preferential treatment for Trump-linked crypto figures.
- The inquiry focuses on the SEC’s March 2026 dismissal of fraud charges against Tron founder Justin Sun following a $10 million settlement.
- Blumenthal’s letter also questions the abrupt departure of the SEC’s former enforcement director and notes a wider pattern of dropped cases.
- This follows previous criticism from Democratic lawmakers who have warned that the SEC’s retreat from enforcement undermines market integrity.
- The senator has asked for all requested documents to be provided to the Senate Permanent Subcommittee on Investigations by April 13.
Senator Richard Blumenthal (D-CT) is demanding answers from SEC Chairman Paul Atkins about whether cryptocurrency backers of President Donald Trump received favorable regulatory treatment. His inquiry, detailed in a letter on Monday, specifically focuses on the recent dismissal of fraud charges against Tron founder Justin Sun. Blumenthal highlighted that Sun became a major investor in Trump’s crypto ventures after facing federal prosecution.
Consequently, the senator is seeking all records related to the enforcement decision on Sun and the departure of former enforcement director Margaret Ryan. He directly connected Ryan’s exit to reports that senior leadership intervened in crypto cases. This scrutiny adds to growing political pressure on the SEC’s current enforcement posture under the Trump administration.
Meanwhile, the agency has closed or dropped several high-profile cases initiated during the Biden administration. These include actions against Coinbase, Binance, and Ripple. Simultaneously, President Trump has granted clemency to industry figures like Binance founder Changpeng “CZ” Zhao.
House Democrats previously warned that this regulatory retreat risks the SEC’s reputation and market integrity. Representative Stephen Lynch (D-MA) stated, “People are losing trust. This is not good for crypto, it’s certainly not good for consumers.” Blumenthal’s office did not immediately respond to a request for comment.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
