Senator Blumenthal Probes SEC Crypto Case Pullback

US Senator Richard Blumenthal has launched an investigation into the US Securities and Exchange Commission's (SEC) handling of cryptocurrency-related cases. The senator has requested records from the SEC regarding the sudden exit of enforcement director Margaret Ryan, who resigned after just over six months in office.

The SEC's recent pullback from several cryptocurrency cases has raised concerns that senior leadership may have intervened to halt enforcement actions tied to crypto firms. This includes cases involving billionaire Justin Sun and major exchanges such as Coinbase Global, which was recently hit with fraud charges.

Blumenthal's letter requests communications between SEC leadership and enforcement staff regarding crypto-related cases. It also seeks records of any instances where enforcement recommendations were overruled by senior SEC officials.