Democrats Blast SEC Over Crypto Retreat, Justin Sun’s Alleged China Ties
Rep. Maxine Waters and fellow Democratic lawmakers criticized the SEC for inconsistent enforcement against crypto firms, alleging selective targeting and politically-motivated reversals, especially in cases involving Tron founder Justin Sun. They accused Sun of using financial influence, including donations to Trump-linked crypto ventures, to sway regulation and settlement terms. Lawmakers raised national security concerns over Sun’s alleged ties to China and the Chinese Communist Party, emphasizing potential foreign influence on U.S. markets. They also described a broader crypto industry effort—spending tens of millions to support Trump—to reshape the SEC’s previous policies under Gary Gensler. The SEC declined to comment. The criticism comes as a crypto market structure bill, clarifying regulator oversight, faces uncertain prospects. Lawmakers urged the SEC to maintain enforcement independence and warned about foreign political and financial interference.
