SEC urges continued investigation into Tron founder
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House Financial Services Committee Ranking Member Maxine Waters, Rep. Brad Sherman, and Rep. Sean Casten sent a letter to SEC Chairman Paul Atkins requesting documents related to at least a dozen cryptocurrency-related enforcement cases, including the Justin Sun case, it was reported on the 15th.
In their letter, the lawmakers questioned the SEC's enforcement priorities and effectiveness, citing its public dismissal of numerous enforcement cases against major cryptocurrency exchanges, including Binance, Coinbase, and Kraken. They specifically pointed out that the decision to keep the case against Justin Sun on hold for an extended period could undermine consistency in securities law enforcement.
Last February, the SEC asked a federal court to stay enforcement proceedings in the Justin Sun case to explore the possibility of a settlement. Lawmakers raised concerns about potential conflicts of interest, citing Sun's ties to China and his dealings with World Liberty Financial, a cryptocurrency project with ties to U.S. President Donald Trump and his family.
The lawmakers warned that if the SEC fails to maintain a strong case against Justin Sun, investor confidence in the agency could be eroded and that it could send a signal to the market that politically influential individuals can avoid accountability. They also demanded that the SEC preserve and produce all internal documents and communications related to its decision in the case.
The SEC and Justin Sun have not yet made an official statement on the request as of press time. In December of last year, Rep. Waters sent a letter to House Financial Services Committee Chairman French Hill, requesting a hearing on the SEC's cryptocurrency policy changes during the Trump administration.
Meanwhile, the SEC is now comprised entirely of Republican commissioners following the recent departure of Democratic Commissioner Caroline Crenshaw. President Donald Trump has yet to nominate candidates for the two currently vacant commission seats.
The Commodity Futures Trading Commission (CFTC) faces a similar predicament. Currently, only one commissioner, Republican Michael Selig, is serving, and while the five-member commission is required by law, appointments are being delayed.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
