U.S. Democrats pressure SEC… “Suspicions of favorable treatment in Trump-linked crypto case”

Democratic U.S. senators raised questions over how the Securities and Exchange Commission (SEC) handled a cryptocurrency-related matter tied to President Donald Trump, following the resignation of the agency’s enforcement chief.

According to Cointelegraph on the 31st (local time), Sen. Richard Blumenthal sent a letter to SEC Chair Paul Atkins asking how the fraud suit involving TRON founder Justin Sun came to be dropped shortly before Enforcement Director Margaret Ryan stepped down.

That same day, Sen. Elizabeth Warren, in a separate letter, demanded clarification on whether former director Ryan had faced constraints from SEC leadership in certain cases.

Democrats view the issue as intersecting with broader controversy over preferential treatment across crypto ventures linked to President Trump. Justin Sun is known as a figure connected to World Liberty Financial (WLFI), which is backed by the Trump camp.

Blumenthal argued that “if the SEC failed to bring credible fraud cases despite warnings from senior officials, it could amount to preferential treatment for financial partners linked to the President.”

He also said the volume of illicit funds tied to crypto has increased since 2025, noting that the TRON network accounts for a large share.

Democratic lawmakers accordingly demanded the SEC submit internal communications since January 20, 2025, records of enforcement deliberations involving crypto companies, and logs of contacts with the Trump family and related figures.

The SEC did not provide a detailed response, but maintained its longstanding stance that “enforcement decisions are based on facts, the law and policy—not politics.”