As soon as he assumed office, the President of the SEC, Paul Atkins, found himself in a storm of controversy. He was questioned by the House Budget Committee on Tuesday about the connections between Donald Trump, crypto-entrepreneur Justin Sun, and a mysterious pro-Trump memecoin. The hearing shed light on shady transactions and controversial decisions made by the agency.
Congress Questions SEC President on Crypto
One incident at the center of the storm involved a $30 million token purchase by Tron, Justin Sun’s company, from World Liberty Financial, a DeFi project openly aligned with Donald Trump. The purchase took place just before the president’s inauguration in January. In the aftermath, the SEC decided to pause its fraud case against Sun, Tron, and their affiliates.
$30 Million, a Gala, and a Suspended Case
The timing raised eyebrows, according to Democratic representative Glenn Ivey. And what followed did not help matters: a gala honoring the top 220 memecoin holders of ‘Trump’ is scheduled for this week. Justin Sun claims to be part of it and publicly expressed his excitement about the invite: ‘Honored to support @POTUS and grateful for @GetTrumpMemes’ invitation to attend President Trump’s gala dinner as his biggest fan!’
For Ivey, there’s no doubt: ‘Frankly, it smells fishy. I hope the SEC will investigate this.’
Paul Atkins Promises a Change of Course
In response to criticism, Paul Atkins assured that the ‘Sun file remains active.’ He also reiterated that the SEC does not consider memecoins as financial securities. Appointed by Trump, Atkins aims to turn the page on the Gensler era, marked by a string of aggressive lawsuits against the crypto industry, many of which were later dropped.
He now pledges a return to regulation through consultation:
One of the major focuses of my term will be the establishment of a rational regulatory framework for crypto-assets, with clear rules on their issuance, custody, and exchange.
Not a Dollar More for the Crypto Task Force
Another topic addressed was the budget of the new SEC crypto task force, led by Commissioner Hester Peirce. Republican Chuck Edwards inquired if additional funds would be needed. Atkins replied, ‘I do not think so. The team consists of existing staff. There are no extra expenses planned.’
