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U.S. Democrats criticize SEC, saying halting crypto probes shows 'political collusion'

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JH Kim
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Summary

  • Democratic members of the U.S. House said they suspect political collusion in the SEC’s decision to halt investigations into major virtual assets (cryptocurrencies).
  • They said the SEC dismissed or closed at least 12 cases, including those involving Coinbase, Binance and Kraken, noting these were cases the agency had been likely to win.
  • They said the timing of the pause overlapped with a period of large political donations from the crypto industry to the Trump administration, and demanded a clear explanation and disclosure of transparent standards from the SEC.

Democratic members of the U.S. House of Representatives raised suspicions of political collusion over the Securities and Exchange Commission’s (SEC) decision to halt investigations into major virtual-asset (cryptocurrency) cases.

According to crypto-focused media outlet CoinDesk on the 15th (local time), Reps. Maxine Waters, Sean Casten and Brad Sherman said in a letter to SEC Chair Paul Atkins that “since early last year, the SEC has dismissed or closed at least 12 cases, including those involving Coinbase, Binance and Kraken, where the likelihood of prevailing was high.”

They added in particular that “the timing of the suspension of investigations overlaps with the period when the crypto industry made large political donations to the Trump administration,” arguing that “it cannot be ruled out that the SEC’s decision was not free from political influence.”

The lawmakers reportedly said the SEC must maintain independence and fairness as a regulator, and called for a clear explanation of how major crypto cases were handled as well as disclosure of transparent standards.

Photo=Shutterstock
Photo=Shutterstock
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JH Kim

reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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