Senator Questions SEC Over Treatment of Trump-Linked Crypto Businesses

Senator Richard Blumenthal (D-CT) is pressing the US Securities and Exchange Commission for answers about whether individuals and companies tied to President Donald Trump’s cryptocurrency businesses received special treatment from regulators.

In a letter to SEC Chairman Paul Atkins on Monday, Blumenthal requested documents and information related to the enforcement decisions concerning cryptocurrency companies, including companies associated with Tron founder Justin Sun, after the board. removed fraud charges against Sun and several of its companies earlier this month in a settlement that included a $10 million fine.

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

“Ms. Ryan’s sudden departure from the agency raises questions about her short tenure and claims that senior leadership intervened to prevent the Division of Enforcement from pursuing charges against other cryptocurrency companies,” Blumenthal wrote. “Indeed, on March 5, 2026, about 11 days before Ms. Ryan left office, the SEC dropped fraud charges against Mr. Sun and several of his companies after they agreed to pay $10 million in fines.”

In March 2023, SEC a case Sun and its companies are security breaches. A case was also made against many influencers, Jake PaulLindsay Lohan, Aliaune “Akon” Thiam, and the main movie star Michelle “Kendra Lust” Mason, for not disclosing they were paid to promote Tron related cryptocurrency tokens.

“In the face of federal charges, Mr. Sun began buying President Trump’s cryptocurrency business, first by buying millions of dollars of the President’s memecoin, $TRUMP, which made Sun a major shareholder and gave him dinner with the President,” Blumenthal wrote. “Mr. Sun and his companies became the first investors in the Trump family’s major cryptocurrency business, World Liberty Financel (WLFI), providing millions in support of WLFI’s token authority and its stablecoin, USD1.

Blumenthal’s letter comes after the SEC it ended several high-profile cases that came during Joe Biden’s administration. The agency closed its case Coinbase in February 2025, he decided to settle his case Binance and founder Changpeng “CZ” Zhao in May 2025, and settled the dispute in his long-standing dispute with Ripple on XRP in August 2025. At the same time, Trump has granted mercy to several prominent people in the cryptocurrency industry, including CZ is the founder of BitMEX Arthur Hayes.

Blumenthal asked the SEC to provide the requested documents to the Senate Permanent Subcommittee on Investigations by April 13, including any documents related to Zhao’s case. The senator also wants records of communications between the chairman’s office and members of the Trump or Witkoff families regarding cryptocurrency businesses.

Blumenthal’s request adds to the criticism from Democratic lawmakers of the SEC’s approach to crypto since Trump. he returned at the office.

In January, House Democrats, including Reps Maxine WatersBrad Sherman, and Sean Casten, warned that the agency’s evasion of enforcement had created political concerns in the legislative elections. This was followed in February, when Democratic lawmakers to be criticized Atkins for reducing the pressure on Binance and Justin Sun, accusing the SEC that it will cause damage to the reputation and reduce the integrity of the market.

“People have lost faith,” Rep. Stephen Lynch (D-MA) told Atkins during a House Appropriations Committee hearing. “This isn’t good for crypto, it’s not good for consumers. It’s the reputational damage the SEC is suffering right now.”

Senator Blumenthal’s office did not immediately respond Decryptrequest for comments.