Senator warns of political interference in SEC operations
Senator Elizabeth Warren expressed concern that political interference is driving the Securities and Exchange Commission’s (SEC) recent decisions regarding cryptocurrencies. Newly appointed SEC Chairman Paul Atkins has pledged to focus on establishing a clear and transparent regulatory framework for the cryptocurrency industry.
At the April 25 roundtable, Atkins emphasized the need for transparent regulations to support innovation. “This is important work as entrepreneurs use blockchain technology to modernize the financial system. Market participants deserve clear regulatory rules of the game,” he said.
The new SEC chairman openly criticized previous leadership under Gary Gensler, under which the agency pursued an aggressive enforcement strategy, filing lawsuits against Coinbase, Ripple, and Binance. Atkins has now pledged to work with Congress and President Donald Trump to establish a regulatory framework that accommodates the unique characteristics of digital assets.
Early signs of this shift are already visible: the SEC has begun dismissing lawsuits initiated under the previous administration and has created a special task force on cryptocurrencies to work with the industry.
At the same time, Senator Warren has seriously questioned the agency’s independence under President Trump, pointing to Trump Media & Technology Group’s (NASDAQ:DJT) efforts to launch cryptocurrency-backed ETFs as a potential conflict of interest because Trump could personally benefit from products requiring SEC approval.
“The president has attempted to assert his dominance over decision-making at independent agencies through executive orders and firings,” the lawmaker said. Warren also noted the risks associated with World Liberty Financial, a crypto project linked to the Trump family that recently revealed plans for a new stablecoin.
Given these risks, the senator requested detailed reports from the SEC, including internal assessments and communications with the White House, emphasizing the need to protect decision-making and maintain the confidence of the financial markets.
Source:: Senator Warren Voices Concern Over SEC’s Political Independence