* Blumenthal seeks SEC records, communications related to crypto cases
* Enforcement director’s departure came after clashes over cases involving Trump ties
* Trump administration has taken softer stance on crypto enforcement
By Chris Prentice and Marisa Taylor
NEW YORK/WASHINGTON, – U.S. Democratic Senator Richard Blumenthal on Monday pressed Securities and Exchange Commission Chairman Paul Atkins for answers about the sudden departure of the agency’s top enforcement official after they reportedly clashed over cases with connections to President Donald Trump and his family, according to a letter reviewed by Reuters.
Blumenthal, the top Democrat on a Senate subcommittee for investigations, cited Reuters’ reporting that the SEC’s top enforcement official, Judge Margaret Ryan, had clashed with Atkins and agency leaders over the direction of its enforcement program, including the handling of cases involving leaders of crypto companies with ties to Trump and his family. Ryan abruptly quit this month.
“Ms. Ryan’s abrupt departure from the agency raises questions in light of her short tenure and reports that senior leadership intervened to prohibit the Enforcement Division from pursuing cases against cryptocurrency companies,” Blumenthal wrote. The lawmaker is seeking records and communications from Atkins and other SEC officials in connection with potential enforcement actions against crypto firms, including any tied to Justin Sun, a major backer of the Trump family’s World Liberty Financial crypto venture, or Changpeng Zhao, he said in a March 30 letter sent to the SEC chairman.
The inquiry into the SEC cases steps up Blumenthal’s probe of illicit crypto use. During the Trump administration, the U.S. has moved to incorporate crypto into more traditional banking systems and taken a softer posture against the industry in enforcement, including at the SEC. The agency has resolved or outright dismissed a number of cases against crypto firms and executives, including Sun and Zhao.
In the letter, Blumenthal said “crypto-fueled crime has skyrocketed since President Trump came back into office.”
The SEC declined to comment. A spokesperson for Zhao’s company said “Binance has not had any discussion with SEC Chairman Atkins, and has not had engagement with any SEC commissioners beyond general policy discussions, over a year ago, which were unrelated to Binance.”
Ryan, a former military judge and clerk to Supreme Court Justice Clarence Thomas, wanted to be more aggressive in pursuing charges for fraud and other misconduct, and took issue with the handling of high-profile cases involving crypto entrepreneur Sun and billionaire Elon Musk, sources previously told Reuters.
Her abrupt departure has rattled an agency that has seen an exodus of staff under the Trump administration as well as major policy changes by Republican leaders taking a softer stance on the crypto industry. Blumenthal also asked Atkins for similar records related to communications with any member of the Trump family or its crypto empire World Liberty Financial, as well as the family of the firm’s CEO Zach Witkoff. He is the son of Steve Witkoff, the U.S. special envoy to the Middle East.
Representatives for Sun’s company, the White House and World Liberty Financial did not respond immediately to requests for comment.
(Reporting by Chris Prentice and Marisa Taylor; Editing by Andrea Ricci)
