Democratic Senator Elizabeth Warren sent an inquiry letter to Paul Atkins, Trump's nominated SEC chairman candidate, on the eve of the 3/28 Senate hearing. Warren not only criticized Atkins' past experience as an FTX advisor but also questioned his potential conflicts of interest with the Trump cryptocurrency TRUMP.
Warren even specifically mentioned Justin Sun, the founder of TRON, pointing out that he was previously sued by the SEC for illegal token issuance and has now become an advisor for the Trump family's DeFi project. She questioned whether there might be collusion between business and politics and demanded an explanation from Atkins.
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ToggleWarren's Early Move: 34-Page Inquiry Letter Preheats Hearing
On the eve of the 3/28 hearing, Warren sent a 34-page inquiry letter to the SEC chairman candidate Paul Atkins, focusing on three main aspects:
Atkins' advisory firm Patomak Global Partners' relationship with FTX
Atkins' stance on supporting the crypto industry
Interest relationships with the Trump family and Justin Sun in the crypto field
FTX Advisor's Dark History Exposed, Relationship with SBF Questioned
Atkins' advisory firm Patomak Global Partners became an advisor to the well-known exchange FTX in early 2022. This experience is one of the key points Warren is targeting Atkins on.
Warren directly stated: "Your deep relationship with FTX and other crypto clients raises concerns about whether you can truly regulate impartially, and the FTX collapse also makes people doubt whether you were aware of its internal situation."
She further asked Atkins: "If FTX had initially complied with US securities trading rules, could these client losses have been avoided?"
Revealing Trump Coin and SEC Interaction, Warren Asks if Trump Family is Shielded
Besides the FTX case, Warren also questioned whether the Trump family is exploiting legal loopholes through cryptocurrencies, especially whether TRUMP coin has been shielded by the SEC. She pointed out that TRUMP was launched just days before Trump took office, and the SEC subsequently claimed that "meme coins are not securities," with a suspiciously timely sequence.
Warren further asked Atkins if he had ever discussed the TRUMP coin or related ETFs with Trump or his family.
Justin Sun Also Implicated, Collaboration Project with Trump Under Scrutiny
Warren also noted that the SEC had accused TRON founder Justin Sun and three companies - Tron Foundation, BitTorrent, and Rainberry Inc. - of illegally selling tokens through an unregistered "bounty program" in March 2023.
However, by November 2024, Justin Sun had transformed into an advisor for the Trump DeFi project "World Liberty Financial" and purchased up to $30 million worth of WLF tokens. Warren again attacked this point, questioning Atkins about whether he had discussed these matters with the Trump family and Justin Sun.
SEC Regulatory Direction Shifts, Future Policy Becomes Clearer
The previous SEC chairman Gary Gensler enforced strict regulations during his tenure, arguing that most cryptocurrencies are securities. However, since Gensler left in January this year, the SEC has clearly shifted, not only withdrawing accounting guidelines and suspending enforcement but also establishing a crypto project team.
If Atkins successfully takes office, it will inevitably trigger Democratic Party doubts about his relationships with controversial crypto figures and concerns that the SEC might further relax regulations during Trump's term, sparking a new wave of confrontation.
(Anti-crypto Senator Elizabeth Warren claimed that some countries are using cryptocurrencies to circumvent sanctions, but was fact-checked by the community)
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
