Waters Demands SEC Hearing Over Crypto Case Dismissals Today

Waters demands hearing with SEC chair over shelved crypto cases, alleging politicization and weakened market surveillance

  • Rep. Maxine Waters has requested a House hearing with SEC Chair Paul Atkins to review recent agency changes and enforcement decisions.
  • Waters cited the dismissal or stay of major crypto enforcement actions involving firms such as Coinbase, Binance, and Justin Sun.
  • The letter lists 10 oversight topics, including SEC independence, politicization, and weakened market surveillance.

Rep. Maxine Waters asked House leaders on Sunday to hold a hearing with SEC Chair Paul Atkins, saying oversight is overdue and pointing to what she called “questionable policy changes.” According to the letter, Waters sent her request to French Hill, chair of the House Financial Services Committee.

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Waters said the SEC “has terminated or stayed major enforcement actions against multiple crypto companies and individuals that had been credibly accused of major violations of our securities laws, including Coinbase, Binance, and Justin Sun.” She also wrote, “In some of these cases, the defendants had announced that the SEC had terminated enforcement actions even before the Commission had taken the actual vote to do so.” The letter PDF outlines the full request.

Paul Atkins, nominated by former President Trump, replaced former chair Gary Gensler in April. Under his tenure the agency has shelved some lawsuits and investigations, eased rules around crypto exchange-traded funds, and advanced initiatives like Project Crypto. An exchange-traded fund (ETF) is a pooled investment that trades on an exchange and tracks an index, commodity, or asset.

Waters has previously criticized crypto developments, expressing anger after the pardon of Changpeng Zhao. She also wrote an opinion piece earlier this year warning that certain crypto bills could increase fraud risks.

The letter lists 10 specific oversight items, including the dismissal of major crypto cases, questions about the SEC’s independence and politicization, and concerns about weakening market surveillance. Waters said the committee must determine how the SEC “intends to deter fraud and manipulation.”

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