Senator Richard Blumenthal is demanding answers from the Securities and Exchange Commission regarding potential preferential treatment afforded to President Donald Trump’s cryptocurrency allies. The inquiry targets the recent dismissal of fraud charges against Tron founder Justin Sun and the abrupt resignation of SEC Enforcement Director Margaret Ryan.
Records indicate Sun became a major holder of the $TRUMP memecoin prior to investing tens of millions in World Liberty Financial, the Trump family’s decentralized finance project. This coincides with the agency closing high-profile lawsuits against industry giants like Coinbase and Binance under the new administration.
Blumenthal has requested communications between the SEC Chair and the Trump or Witkoff families by April 13. Democrats argue these regulatory retreats undermine market integrity and signal political influence over enforcement decisions.