Senator questions SEC about treatment of cryptocurrency companies linked to Trump

Sen. Richard Blumenthal (D-CT) is pressing the U.S. Securities and Exchange Commission for answers about whether individuals and companies associated with President Donald Trump’s cryptocurrency projects have received preferential treatment from regulators.

In a letter To SEC Chairman Paul Atkins on Monday, Blumenthal requested records and communications related to enforcement decisions related to cryptocurrency companies, including companies linked to Tron founder Justin Sun, after the agency It was rejected Fraud charges were filed against Sun and several of his companies earlier this month in a settlement that included a $10 million civil penalty.

Blunthal’s letter also questioned the departure of Margaret Ryan, who served just six months as director of the SEC’s Enforcement Division before leaving the agency.

“Ms. Ryan’s abrupt departure from the agency raises questions in light of her short tenure and reports that senior leadership intervened to prevent the Enforcement Division from pursuing cases against certain cryptocurrency companies,” Blumenthal wrote. “In fact, on March 5, 2026, approximately 11 days before Ms. Ryan stepped down from her position, the SEC dismissed fraud charges against Mr. Sun and several of his companies after he agreed to pay a $10 million fine.”

In March 2023, the Securities and Exchange Commission (SEC). Charged Sun and his companies with securities violations. Charges have also been brought against many influential figures. Jake PaulAnd Lindsay Lohan, Aliaune “Akon” Thiam, and porn star Michelle “Kendra Lust” Mason, for not disclosing that they were paid to promote cryptocurrency tokens linked to Tron.

“Facing federal prosecution, Mr. Sun began purchasing President Trump’s cryptocurrency projects, first by purchasing millions of dollars’ worth of President Trump’s coin, making Sun its largest holder and granting him the right to have a private dinner with the president,” Blumenthal wrote. “Subsequently, Mr. Sun and his companies became early investors in the Trump family’s larger cryptocurrency project, Funding global freedoml(WLFI), providing tens of millions to support the WLFI governance token and its stablecoin, USD1.”

Blumenthal’s letter comes after the Securities and Exchange Commission I finish Many of the high-profile cases were originally filed during the Joe Biden administration. The agency closed its lawsuit against Coinbase In February 2025, she moved to dismiss the lawsuit against her Binance and founder Changpeng “CZ” Zhao in May 2025, ending appeals in his long-running dispute with ripple regarding XRP in August 2025. Meanwhile, Trump granted clemency to several prominent figures in the cryptocurrency industry, including Czechoslovakia And founder of BitMEX Arthur Hayes.

Blumenthal asked the SEC to provide the requested records to the Senate Permanent Subcommittee on Investigations by April 13, and to include any documents related to Zhao’s case as well. The senator is also seeking records of communications between the president’s office and members of the Trump or Witkoff families regarding the cryptocurrency business.

Blumenthal’s order adds to further criticism from Democratic lawmakers over the SEC’s approach to crypto enforcement since Trump. He came back To the office.

In January, House Democrats, including Reps Maxine WatersBrad Sherman and Sean Kasten warned that the agency’s rollback of enforcement actions raised concerns about political influence on regulatory decisions. This was followed in February, when Democratic lawmakers criticize Atkins to ease enforcement against Binance and Justin Sun, accusing the SEC of causing reputational damage and undermining market integrity.

“People are losing confidence,” Rep. Stephen Lynch (D-Mass.) told Atkins during a hearing before the House Financial Services Committee. “This is not good for cryptocurrencies, and it’s certainly not good for consumers. The damage the SEC is suffering right now.”

Senator Blumenthal’s office did not immediately respond DecryptionRequest for comment.