SEC Chair Paul Atkins faced tough questions during a congressional hearing regarding his agency’s handling of a memecoin linked to Donald Trump and alleged connections to crypto entrepreneur Justin Sun.
At a House Appropriations Committee session, Representative Glenn Ivey raised concerns about the SEC’s pause in enforcement actions, pointing out that Sun's company, Tron, reportedly purchased $30 million worth of tokens from a Trump-inspired DeFi platform, World Liberty Financial, shortly before Trump’s January inauguration.
Ivey also highlighted that Trump’s memecoin is still actively circulating, with a high-profile gala for top holders scheduled this weekend—an event Justin Sun confirmed he would attend. In response, Atkins stated that the case against Sun remains active and reiterated that the SEC does not currently classify memecoins as securities.
Atkins further emphasized a shift in the SEC’s approach under his leadership, favoring clear rules over enforcement actions. He confirmed that the crypto task force, led by Commissioner Hester Peirce, does not require additional budget and aims to reduce regulatory uncertainty by establishing transparent guidelines for the crypto sector.
