Two senior US senators have stepped up pressure on the Securities and Exchange Commission, questioning whether political influence shaped the agency’s handling of cryptocurrency cases connected to Donald Trump’s business circle. In separate letters to SEC Chair Paul Atkins, Richard Blumenthal and Elizabeth Warren asked whether agency leadership intervened in enforcement matters and gave favorable treatment to politically connected crypto firms.
Resignation timeline draws attention to Justin Sun case
The scrutiny centers on Margaret Ryan, who resigned from the SEC’s Division of Enforcement on March 16 after only six months in the role. Her departure came shortly after the SEC dropped fraud charges against Justin Sun and several affiliated companies, resolving the matter for $10 million. The case had previously included allegations of market manipulation, wash trading, and undisclosed promotions. Blumenthal wrote that the SEC may have given preferential treatment to Trump’s financial partners when it declined to litigate what he described as credible fraud cases.
Both senators pointed to Ryan’s abrupt exit and reported internal disagreements as possible signs that enforcement decisions were not left entirely to career staff. Warren said Ryan wanted a more aggressive approach but faced resistance from Atkins and other political appointees, raising questions about whether enforcement personnel were allowed to fully pursue cases involving Trump allies.
Records request extends to Sun and Zhao-linked firms
Blumenthal asked for a broad set of internal records and communications tied to enforcement decisions involving Justin Sun and other major crypto companies. His request specifically includes firms affiliated with Changpeng Zhao, the former Binance CEO who faced US regulatory action and later received a presidential pardon from Trump. He also stressed the timing: the SEC dropped its case against Sun just 11 days before Ryan resigned.
Trump-connected crypto ventures move to the center of the inquiry
The letters also focus on Sun’s financial ties to crypto projects linked to Trump. According to Blumenthal, Sun bought millions of dollars of the TRUMP memecoin and became its largest holder. He later invested tens of millions of dollars into World Liberty Financial, a Trump-backed crypto project connected to both a governance token and a stablecoin. Blumenthal warned that such ties risk creating a “pay-to-play” enforcement system in which regulatory outcomes could be shaped by financial relationships rather than legal standards.
Illicit finance data and transparency concerns add pressure
Blumenthal cited external reports saying illicit crypto activity rose from $59 billion in 2024 to $154 billion in 2025. He argued that Sun’s Tron network was a major part of that picture. While Tron accounted for roughly one-third of payment token activity, it was linked to 58% of illicit crypto finance in 2024, including money laundering and sanctions evasion.
Warren raised a separate issue: disclosure. She criticized the SEC for not releasing its 2025 enforcement data, saying the delay weakens transparency and public accountability. The senators have asked the agency to produce extensive records by mid-April, setting the stage for possible congressional scrutiny of whether SEC enforcement decisions were affected by political and financial ties.