SEC Faces Scrutiny Over Treatment of Trump-Linked Crypto Businesses

US Senator Richard Blumenthal has sent a letter to the Securities and Exchange Commission (SEC) requesting information about the agency's treatment of cryptocurrency businesses linked to President Donald Trump. The inquiry comes after the SEC dropped fraud charges against Tron founder Justin Sun, and as the agency has closed or dismissed multiple high-profile crypto cases.

The SEC dismissed the charges against Sun and his companies in a settlement that included a $10 million civil penalty. Blumenthal's letter questions whether individuals and companies tied to Trump's cryptocurrency ventures received preferential treatment from regulators. The senator is seeking records and communications related to enforcement decisions involving cryptocurrency firms, including companies linked to Tron.

The SEC has faced criticism from Democratic lawmakers over its approach to crypto enforcement since Trump returned to office. The agency closed its lawsuit against Coinbase in February 2025, moved to dismiss its case against Binance and founder Changpeng 'CZ' Zhao in May 2025, and ended appeals in its long-running dispute with Ripple over XRP in August 2025.