House Democrats ask SEC to reopen Justin Sun case, seek related records

Three House Democrats asked Securities and Exchange Commission Chair Paul Atkins to provide information about the agency closing or dismissing investigations in "at least one dozen crypto-related cases," and urged the SEC to consider reopening its enforcement action against Tron founder Justin Sun, the lawmakers said in a Thursday letter.

Representatives Maxine Waters, Brad Sherman and Sean Casten questioned the SEC's "priorities and effectiveness," saying the agency had "openly and boldly dismissed the majority of its crypto enforcement cases," including those against Binance, Coinbase and Kraken. The letter noted that in February the SEC's lawyers asked a federal court to stay the enforcement action against Sun to explore a potential resolution, and the lawmakers raised questions about Sun's connections to China and said the case being dropped "may be part of a pay-to-play scheme" tied to his purchase of millions of dollars of tokens from World Liberty Financial, which the letter said is backed by US President Donald Trump and his sons.

"The SEC’s decision to seek a stay of its strong case against Sun […] threatens to undermine investors’ confidence in the SEC," said the letter, adding: "Without a strong, independent SEC, capital formation will undoubtedly suffer, as would our real economy.

Key Topics

Crypto, Justin Sun, Sec, Maxine Waters, Brad Sherman, Sean Casten