Senator Elizabeth Warren is concerned that political interference is affecting the SEC's latest decisions on cryptocurrency. Paul Atkins, the newly appointed SEC Chair, has promised to prioritize clear and transparent legal frameworks for the cryptocurrency industry.
His promise marks a significant change in the agency's direction after years of controversy.
Paul Atkins Outlines New Direction for Cryptocurrency Regulation at SEC
In a discussion on 04/25 organized by the SEC's cryptocurrency task force, Atkins emphasized the urgent need for transparent rules to support responsible innovation and growth.
"This is important work as entrepreneurs across the United States are leveraging blockchain technology to modernize aspects of our financial system. I expect significant benefits from this market innovation in efficiency, cost reduction, transparency, and risk minimization. Market participants using this technology deserve clear legal rules," Atkins stated.
Meanwhile, Atkins publicly criticized the previous SEC leadership under former Chair Gary Gensler. He argued that the lack of clarity in policy had hindered industry development and pushed key players to the brink.
Under Gensler, the SEC pursued an aggressive enforcement strategy, filing lawsuits against major companies including Coinbase, Ripple, and Binance.
Now, Atkins has committed to rectifying past mistakes. He pledged to work closely with Congress and President Donald Trump to create a legal structure compatible with the unique characteristics of digital assets.
Initial signs of this change have emerged, with the SEC beginning to revoke some enforcement actions initiated in the previous administration. The committee has also established a cryptocurrency task force to collaborate with industry stakeholders in shaping future policy.
US Legislator Warns of Potential Political Interference
While Atkins seeks to reset the SEC's approach to cryptocurrency oversight, concerns are growing about the agency's independence.
On 04/25, Senator Elizabeth Warren seriously questioned the agency's independence under President Trump's leadership. She pointed out Trump Media & Technology Group's (TMTG) efforts to launch cryptocurrency-backed ETFs with Crypto.com as a potential conflict of interest.
The Senator expressed particular concern that Trump might personally benefit from products requiring SEC approval, describing the situation as an unprecedented ethical risk.
"The President has attempted to assert his power over decision-making at independent agencies like the SEC through executive orders and dismissals, putting additional pressure on the Committee to comply," the legislator stated.
Warren also warned about risks related to World Liberty Financial, a cryptocurrency project associated with the Trump family, which recently revealed plans for a new stablecoin.
She emphasized that pending legislation could soon grant the Federal Reserve and the Office of the Comptroller of the Currency more supervisory powers. Trump is reportedly seeking greater control over these two agencies.
In light of these risks, Warren has requested the SEC provide detailed records, including internal assessments and communications with the White House.
She stressed that these measures are necessary to protect the decision-making process and maintain the credibility of financial markets.
