Nikolas Sargeant
US Representative Maxine Waters has called for a congressional hearing with Securities and Exchange Commission Chairman Paul Atkins, citing concerns over the agency's dismissal of major cryptocurrency enforcement cases and what she characterizes as "questionable policy changes" under the Trump administration.
In a letter Sunday to French Hill, chair of the House Financial Services Committee, Waters argued that an oversight hearing is overdue given what she views as significant shifts in SEC policy since Atkins assumed leadership. "Chair Gensler testified before the Committee twice during his first year. Despite having a clear obligation to oversee the SEC, the Committee has not held a single hearing with Chairman Atkins, despite the agency's rapid, significant, and questionable policy shifts during the Trump Administration," she wrote.
Waters outlined 10 points requiring scrutiny at an oversight meeting, including the dismissal of major crypto enforcement actions, concerns about the SEC's independence and potential politicization, and what she described as weakening market surveillance capabilities.
She claimed the SEC "has terminated or stayed major enforcement actions against multiple crypto companies and individuals that had been credibly accused of major violations of our securities laws, including Coinbase, Binance, and Justin Sun," adding: "In some of these cases, the defendants had announced that the SEC had terminated enforcement actions even before the Commission had taken the actual vote to do so."
Waters stated the Financial Services Committee needs to examine how the agency "intends to deter fraud and manipulation" in cryptocurrency markets given the recent enforcement retreats. Her letter suggests concern that reduced enforcement could enable bad actors to operate with impunity in digital asset markets.
Atkins, who was nominated by President Donald Trump, took over from former Chair Gary Gensler in April. Under his tenure, the SEC has adopted a friendlier approach to cryptocurrency regulation, with lawsuits and investigations shelved, relaxed rules for crypto exchange-traded funds, and proactive engagement with the industry through initiatives like Project Crypto.
The policy shift represents a dramatic reversal from the Gensler era, which was characterized by aggressive enforcement actions against major cryptocurrency platforms and a regulatory approach critics described as "regulation by enforcement." Gensler's SEC pursued cases arguing that most cryptocurrencies constituted unregistered securities requiring compliance with traditional securities laws.
White House AI and Crypto Czar David Sacks recently praised the Commodity Futures Trading Commission and SEC leadership as a cryptocurrency regulation "dream team," reflecting the administration's supportive stance toward digital assets. The characterization contrasts sharply with Waters' concerns about reduced enforcement.
This is far from the first time Waters has criticized the cryptocurrency industry and the Republican Party's approach to digital asset regulation. In October, she expressed outrage at the pardoning of Binance co-founder Changpeng Zhao, who pleaded guilty to violating the Bank Secrecy Act and resigned as CEO as part of a settlement with federal prosecutors.
In mid-July, Waters wrote an opinion piece warning about major cryptocurrency legislative frameworks including the CLARITY Act and the GENIUS Act, stating they would "open the floodgates to massive fraud and financial ruin." Her consistent opposition to loosening cryptocurrency regulations reflects broader Democratic concerns about consumer protection and market integrity in digital asset markets.
Waters' call for oversight hearings reflects ongoing partisan divisions over cryptocurrency policy, with Republicans generally favoring lighter regulatory approaches that enable industry innovation while Democrats emphasize consumer protection and enforcement against fraud. The debate has intensified as the Trump administration has embraced cryptocurrency more explicitly than previous administrations.
The Financial Services Committee has jurisdiction over the SEC and regularly conducts oversight hearings with agency leadership. Whether Hill, a Republican who has supported cryptocurrency-friendly legislation, will schedule the hearing Waters requests remains uncertain given the committee's current priorities and the political dynamics surrounding digital asset regulation.
