Congresswoman Waters points out SEC's shift in crypto policy, calls for a hearing on dismissing two major CEX cases

U.S. Representative Maxine Waters recently publicly called for a formal hearing on the SEC’s cryptocurrency regulatory policies, directly targeting current SEC Chairman Paul Atkins. She emphasized that, amid a significant shift in the SEC’s enforcement attitude towards the crypto industry, congressional oversight is “long overdue.”

In a letter to House Financial Services Committee Chair French Hill, Waters pointed out that the SEC quickly adjusted its crypto regulatory stance during President Trump’s administration but has never faced public questioning from the committee. She believes this change is “worthy of discussion” and could undermine the credibility of market regulation. She specifically mentioned that former Chair Gensler attended two hearings in his first year in office, while Atkins has yet to face oversight of the same level.

In the letter, Waters listed ten core issues she believes must be examined, focusing on the SEC’s rejection or suspension of several major cryptocurrency enforcement cases, whether the agency’s independence has been politicized, and whether oversight of market manipulation and fraud has been weakened. She named two major CEXs and cases related to Justin Sun, stating that the SEC has terminated or paused enforcement actions against these entities, even with defendants announcing the case was over before the committee’s formal vote.

Since taking over as SEC Chair in April this year, Atkins has generally adopted a more friendly regulatory approach towards cryptocurrencies, including easing crypto ETF regulations, suspending multiple investigations, and promoting a new crypto regulatory framework through “Project Crypto.” This shift has been welcomed within the industry but has also sparked strong criticism from within the Democratic Party.

Waters has long been known for opposing cryptocurrency fraud. She previously criticized the Republican-supported CLARITY and GENIUS bills, warning that these legislations could trigger systemic financial risks. As cryptocurrency issues become increasingly politicized, the hardline stance of Democratic Party members may continue to influence the U.S. crypto regulatory environment.