US Representative Maxine Waters has called for a congressional hearing with Securities and Exchange Commission Chairman Paul Atkins, citing concerns over the agency’s handling of cryptocurrency cases and a range of other issues.
In a letter sent Sunday to French Hill, chair of the House Financial Services Committee, Waters argued that the hearing is long overdue, criticizing what she described as “questionable policy changes” at the SEC.
“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, even as the agency undertook rapid, significant, and questionable policy shifts during the Trump Administration,” Waters wrote.
She highlighted ten specific points she believes the oversight hearing should address, including the dismissal of major crypto enforcement actions, the SEC’s independence and potential politicization, and weakening market surveillance.
Waters further alleged that the SEC “has terminated or stayed major enforcement actions against multiple crypto companies and individuals credibly accused of serious violations of our securities laws, including Coinbase, Binance, and Justin Sun.”
“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.”
Atkins, who was nominated by President Donald Trump, succeeded former SEC Chair Gary Gensler in April. Since taking the helm, the SEC has adopted a more crypto-friendly stance, shelving lawsuits and investigations, easing rules for crypto exchange-traded funds, and promoting proactive engagement with the industry through initiatives such as Project Crypto.
Waters pushes to curb crypto ‘fraud’
This is not Waters’ first criticism of the cryptocurrency sector or the Republican Party’s approach to it. In October, she voiced outrage over the pardon of Binance co-founder Changpeng Zhao.
Earlier, in mid-July, Waters authored an opinion piece warning that major legislative proposals like the CLARITY Act and the GENIUS Act could “open the floodgates to massive fraud and financial ruin.”
The hardline stance taken by some Democrats as cryptocurrency becomes increasingly politicized could pose challenges for the industry. According to Kalshi odds, Democrats currently have a 75% chance of securing a House majority, potentially increasing regulatory scrutiny.
