US Representative Maxine Waters is calling for an oversight hearing with Securities and Exchange Commission (SEC) Chair Paul Atkins, raising concerns about how the agency is handling crypto regulation and enforcement.
In a letter sent Sunday to French Hill, chair of the House Financial Services Committee, Waters argued that congressional oversight of the SEC is long overdue. She pointed to what she described as a series of “questionable policy changes” under the current leadership.
“Chair Gensler testified before the Committee twice during his first year,” Waters wrote. “Despite our clear responsibility to oversee the SEC, the Committee has not held a single hearing with Chairman Atkins—even as the agency has made rapid, significant, and questionable policy shifts during the Trump Administration.”
Concerns Over Dropped Crypto Cases
Waters outlined 10 issues she believes should be addressed at an oversight hearing. These include the dismissal of major crypto enforcement actions, concerns about the SEC’s independence, and what she sees as weaker market surveillance.
She claimed the SEC has “terminated or paused” enforcement cases against several high-profile crypto firms and individuals accused of violating securities laws, including Coinbase, Binance, and Justin Sun.
“In some instances, defendants announced that the SEC had dropped enforcement actions before the Commission had even formally voted on them,” Waters said.
According to Waters, the Financial Services Committee needs to examine how the SEC plans to “deter fraud and manipulation” in the crypto market going forward.
A Shift in the SEC’s Crypto Stance
Atkins, who was nominated by President Donald Trump, took over as SEC chair in April, replacing Gary Gensler. Since then, the agency has adopted a noticeably more crypto-friendly approach.
Under Atkins’ leadership, several lawsuits and investigations have been shelved, rules around crypto exchange-traded funds have been relaxed, and the SEC has signaled a more cooperative regulatory stance through initiatives such as Project Crypto.
Waters’ Longstanding Crypto Criticism
Waters has long been a vocal critic of both the crypto industry and Republican-led efforts to ease regulation. In October, she sharply criticized the pardon of Binance co-founder Changpeng Zhao.
Earlier this year, she also warned against proposed crypto legislation such as the CLARITY Act and the GENIUS Act, arguing they could “open the floodgates to massive fraud and financial ruin.”
As crypto becomes increasingly politicized, this divide could have real implications for the industry. According to Kalshi odds, Democrats currently have a 75% chance of regaining a House majority, a shift that could bring tougher scrutiny back to crypto regulation.
