Senator Questions SEC Over Treatment of Trump-Linked Crypto Businesses

Senator Richard Blumenthal (D-CT) is urgent the U.S. Securities and Alternate Fee for solutions about whether or not people and firms tied to President Donald Trump’s cryptocurrency ventures obtained preferential remedy from regulators.

In a letter to SEC Chairman Paul Atkins on Monday, Blumenthal requested data and communications associated to enforcement choices involving cryptocurrency companies, together with firms linked to Tron founder Justin Solar, after the company dismissed fraud fees towards Solar and several other of his firms earlier this month in a settlement that included a $10 million civil penalty.

Bluenthal’s letter additionally questioned the departure of Margaret Ryan, who had served solely six months as director of the SEC’s Division of Enforcement earlier than leaving the company.

“Ms. Ryan’s abrupt departure from the company raises questions in mild of her brief tenure and experiences that senior management intervened to ban the Division of Enforcement from pursuing instances towards sure cryptocurrency firms,” Blumenthal wrote. “Certainly, on March 5, 2026, roughly 11 days earlier than Ms. Ryan stepped down from her place, the SEC dismissed fraud fees towards Mr. Solar and several other of his firms after he agreed to pay a $10 million superb.”

In March 2023, the SEC charged Solar and his firms with securities violations. Expenses have been additionally filed towards a number of influencers, Jake Paul, Lindsay Lohan, Aliaune “Akon” Thiam, and grownup movie star Michelle “Kendra Lust” Mason, for not disclosing they have been paid to advertise Tron-related cryptocurrency tokens.

“Dealing with federal prosecution, Mr. Solar started to purchase into President Trump’s cryptocurrency ventures, first by buying thousands and thousands of {dollars} price of the President’s memecoin, $TRUMP, which made Solar its largest holder and entitled him to a non-public dinner with the President,” Blumenthal wrote. “Mr. Solar and his companies then went on to turn out to be an early investor within the Trump household’s bigger cryptocurrency enterprise, World Liberty Financial (WLFI), offering tens of thousands and thousands in help to WLFI’s governance token and its stablecoin, USD1.”

Blumenthal’s letter comes after the SEC ended a number of high-profile instances initially introduced throughout the Joe Biden administration. The company closed its lawsuit towards Coinbase in February 2025, moved to dismiss its case towards Binance and founder Changpeng “CZ” Zhao in Might 2025, and ended appeals in its long-running dispute with Ripple over XRP in August 2025. On the identical time, Trump has granted clemency to a number of distinguished figures within the cryptocurrency business, together with CZ and BitMEX founder Arthur Hayes.

Blumenthal requested the SEC to offer the requested data to the Senate Everlasting Subcommittee on Investigations by April 13, and to incorporate any paperwork associated to Zhao’s case as nicely. The senator can be searching for data of contacts between the chairman’s workplace and members of the Trump or Witkoff households concerning cryptocurrency companies.

Blumenthal’s request provides additional criticism from Democratic lawmakers over the SEC’s method to crypto enforcement since Trump returned to workplace.

In January, Home Democrats, together with Representatives Maxine Waters, Brad Sherman, and Sean Casten, warned that the company’s retreat from enforcement actions raised issues about political affect over regulatory choices. This was adopted in February, when Democratic lawmakers criticized Atkins for alleviating enforcement towards Binance and Justin Solar, accusing the SEC of enabling reputational injury and undermining market integrity.

“Individuals are shedding belief,” Rep. Stephen Lynch (D-MA) informed Atkins throughout a listening to earlier than the Home Monetary Providers Committee. “This isn’t good for crypto, it’s actually not good for customers. The reputational injury the SEC is struggling proper now.”

The workplace of Senator Blumenthal didn’t instantly reply to Decrypt‘s request for remark.