Crypto Crackdowns: What's Happening with the SEC and Justin Sun?

The SEC is facing criticism for dropping crypto-related cases, including one against Justin Sun, the founder of Tron.

Maxine Waters Questions SEC's Shift

Maxine Waters, a prominent Democrat, questioned SEC Chairman Paul Atkins about the agency's sudden change in direction. She highlighted that the SEC abandoned many crypto enforcement cases when Trump took office and replaced leadership.

Justin Sun's Case on Hold

Sun was accused by the SEC of manipulating the price of his token, TRX. The SEC alleged that Sun and his employees conducted over 600,000 wash trades to artificially inflate the token's value. However, the case has been on hold for a year with no resolution in sight.

Connections and Allegations

Waters also mentioned Sun's connections to Trump's family and a recent claim by an alleged ex-girlfriend who said she had evidence of TRX manipulation. The SEC has not commented on these developments.

SEC's Defense

Atkins defended the SEC's approach, stating that they focus on real fraud involving securities. He also mentioned that the SEC is working on new regulations for the crypto industry, alongside the Commodity Futures Trading Commission (CFTC).

Policy Race Between SEC and Senate

The crypto industry is watching a policy race between the SEC and Senate lawmakers. The Senate is working on the Clarity Act to regulate U.S. crypto markets, but recent setbacks have slowed their progress. With the SEC potentially taking the lead, the future of crypto regulation in the U.S. remains uncertain.