SEC Chair Paul Atkins said the U.S. “can and should be the crypto capital of the world” during a House hearing on Wednesday, where Democrats accused him of eroding trust by dismissing cases against crypto firms tied to President Trump.



<h3>The Crypto Capital Vision</h3>



Atkins told the House Financial Services Committee that achieving Trump’s goal of making the U.S. the crypto capital requires a framework that makes sense. 



Traditional SEC rules “are not really fit for purpose” and created marketplace uncertainty, driving the need for the Clarity Act.



“We want to make sure people know the rules of the road and can abide by it,” Atkins said, emphasizing the SEC must work closely with the CFTC to avoid gaps in oversight while giving innovators clarity.



<h3>The Democratic Attack</h3>



Rep. Stephen Lynch (D-MA) told Atkins that “people are losing trust” in both the SEC and crypto industry. “This is not good for crypto, it’s certainly not good for consumers. And it’s awful, the reputational damage the SEC is suffering right now.”



Lynch cited the Binance case dismissal. The SEC dropped its lawsuit against Binance (CRYPTO: BNB), which played a major role in facilitating growth of World Liberty Financial (CRYPTO: WLFI), the Trump family’s crypto company. 



Trump pardoned Binance founder Changpeng Zhao in October after Zhao pleaded guilty to violating money laundering laws and spent four months in prison.



Rep. Maxine Waters (D-CA) attacked the Justin Sun case pause. The SEC indefinitely paused its lawsuit against Tron (CRYPTO: TRX) founder Justin Sun months after he purchased $75 million worth of WLFI tokens. 



The lawsuit accused Sun of offering unregistered securities and fraudulently manipulating TRX token prices through “extensive wash trading.”



Sun also attended a private dinner with Trump last spring as one of the top holders of Trump’s meme coin. 



Last week, a woman identifying as Sun’s ex-girlfriend said she reported substantial evidence of Sun’s insider trading and market manipulation to the SEC. However, Sun denied the allegations.



Waters asked Atkins if he intended to investigate the new claims or resume the case. Atkins declined to comment on any specific case brought up during the hearing.



<h3>The Market Context</h3>



Democrats cited the crypto market downturn, arguing investors are losing faith due to the SEC’s new policies. 



As digital assets shed over $1 trillion in value, some of Trump’s allies became vocal about damage from his crypto ventures.



“He literally used his voting base as exit liquidity,” one prominent pro-Trump crypto influencer said this week. “This is not the behavior of an actual leader.”



Image: Shutterstock

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BTCS

SEC Chair Paul Atkins stated that the U.S. should be the "crypto capital of the world" during a House hearing, despite criticism from Democrats regarding his handling of cases involving crypto firms linked to Trump. He emphasized the need for a clear regulatory framework to restore trust in the SEC and the crypto industry. Democrats expressed concerns over the SEC's recent decisions, including the dismissal of the Binance lawsuit and the pause on the Justin Sun case, arguing these actions contribute to a loss of investor confidence amid a significant market downturn.

- SEC Chair Paul Atkins advocated for the U.S. to become the "crypto capital of the world," stressing the need for a clearer regulatory framework to foster innovation.  
- Democrats criticized Atkins for undermining trust in the SEC by dropping cases against crypto firms connected to President Trump, citing recent dismissals such as the Binance lawsuit.  
- The hearing highlighted a broader concern about the SEC's policies amid a $1 trillion downturn in the crypto market, which has diminished investor confidence.

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SEC Chair Says US Should Be 'Crypto Capital Of World' As Democrats Slam Him For Binance, Trump Ties