U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins faces tough questions from Congress just weeks after taking office. Speaking before the House Budget Committee, Atkins was questioned about memecoin projects linked to President Donald Trump and his possible ties to cryptocurrency entrepreneur Justin Sun. Democratic Representative Glenn Ivey drew attention to some events that took place before Trump’s inauguration in January. Ivey brought up the $30 million token purchase by Tron, a company owned by Justin Sun, from decentralized finance firm World Liberty Financial, which said it was inspired by Trump. The SEC later suspended the fraud case against Justin Sun and his companies. This development led to various speculations in the public. On the other hand, a memecoin connected to Trump is currently trading on the market and Trump is preparing to hold a special gala for the first 220 memecoin investors this week. “This situation doesn’t smell good to me, frankly. I hope the SEC looks into this connection,” Ivey said. Atkins, on the other hand, stated that the case against Sun is still “active” and reminded that the SEC does not classify memecoins as securities. Related News: Analyst Warns: “Bitcoin's Record High Has No Meaning, Focus on This Level Instead” Atkins, who was appointed by Trump, said that the institution had entered a “new era” after his predecessor Gary Gensler took a “hostile” stance against the crypto industry. During Gensler’s term, the SEC filed numerous lawsuits against the industry, but some of them were later dropped. In his written statement, Atkins described his plan for crypto regulation as “rulemaking through a notice and comment process.” “My primary goal during my presidency will be to develop a sound regulatory framework for crypto asset markets that operates with clear rules,” he said. “This framework will continue to deter malicious actors who engage in illegal activities while regulating issuance, custody and trading processes.” Republican Representative Chuck Edwards asked whether the SEC’s newly established crypto task force needed additional funding. The task force, established earlier this year by former interim chairman Mark Uyeda and led by Commissioner Hester Peirce, aims to clarify how securities laws apply to crypto by holding roundtables with industry representatives. “I don’t have a definitive opinion,” Atkins said. “The task force is comprised of existing staff and led by Commissioner Peirce, so there is no additional budget request,” he added. *This is not investment advice. Continue Reading: Tron (TRX) and Justin Sun Crisis in the US Congress: SEC Chairman Paul Atkins Makes a Statement
