Democrats press SEC’s Atkins over dropped crypto cases, Trump industry ties as agency shifts strategy

Democratic lawmakers are intensifying their scrutiny of Paul Atkins, a leading figure in the potential restructuring of the Securities and Exchange Commission (SEC), raising concerns over his industry ties and the agency’s recent pivot in enforcement. In a series of formal inquiries, Democrats have questioned the decision to drop several high-profile cryptocurrency enforcement cases, suggesting that the shift signals a departure from the rigorous oversight seen under previous leadership. Lawmakers have highlighted Atkins’ past consulting work for digital asset firms and his close relationship with the Trump administration, arguing that these connections could pose significant conflicts of interest. The scrutiny comes as the SEC appears to be moving toward a more industry-friendly ‘lighter touch’ regulatory approach, favoring innovation over the ‘regulation by enforcement’ strategy. While industry advocates welcome the change as a way to promote market growth, critics warn that softening the agency’s stance may compromise investor protections and market integrity in the volatile crypto sector.

Source: Democrats press SEC’s Atkins over dropped crypto cases, Trump industry ties as agency shifts strategy