Catenaa, Friday, May 23, 2025- Securities and Exchange Commission (SEC) Chair Paul Atkins faced sharp questioning from lawmakers Tuesday over the agency’s paused case against crypto mogul Justin Sun and his reported connections to a meme coin linked to former President Donald Trump.
The scrutiny came during a House Appropriations Committee hearing on federal oversight and funding, marking Atkins’ first major appearance since assuming office in April.
Rep. Glenn Ivey, D-Md., expressed concern about possible conflicts of interest, citing Sun’s ties to World Liberty Financial and his public promotion of the Trump-themed token.
Atkins confirmed the SEC’s fraud case against Sun remains active but provided no additional detail. He reiterated that meme coins are not currently classified as securities under SEC policy.
Sun’s high-profile involvement in the Trump-linked token comes as the SEC shifts its approach to crypto oversight. Atkins signaled a departure from his predecessor Gary Gensler’s enforcement-heavy stance, pledging structured rulemaking instead.
Atkins also said the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, would deliver guidance “in the next few months.” The hearing came as the Senate advanced the GENIUS Act, a bill that could establish a federal framework for stablecoins.
With regulatory clarity still elusive, the SEC’s evolving posture could reshape crypto policy heading into the 2024 election.
