Two Democratic senators are demanding answers from the U.S. Securities and Exchange Commission regarding the abrupt departure of its top enforcement official, Margaret Ryan.
Senator Richard Blumenthal accused the SEC of showing favoritism toward individuals connected to former President Donald Trump. His concerns center on the agency’s decision to drop a fraud case against Tron founder Justin Sun just 11 days before Ryan left her post.
In a joint effort, Senator Elizabeth Warren also expressed alarm over Ryan’s exit and whether internal pressures influenced key enforcement choices tied to Trump’s inner circle.
Both lawmakers are calling for full transparency, seeking records of communications between SEC leadership and political figures, particularly those involved with Trump-backed World Liberty Financial.
Blumenthal highlighted that Tron processed over 58% of illicit crypto transactions in 2024, raising national security concerns. He alleged that Trump’s return to power has enabled preferential treatment for business partners through weakened regulatory oversight.
Ryan reportedly clashed with SEC leadership over enforcement priorities, including possible actions against Tesla CEO Elon Musk, according to Reuters.
The SEC maintains it acts based on law and evidence-not political influence-as controversies mount around its handling of high-profile crypto probes under Chair Paul Atkins.