US Representative Maxine Waters called for an oversight hearing with the US Securities and Exchange Commission, expressing concerns regarding what she feels is a marked and troubling shift in the commission’s approach to crypto regulation.
In a letter sent Sunday to French Hill, chair of the House Financial Services Committee (HFSC), Waters argued that the committee has failed in its responsibility to properly oversee the SEC. She said the lack of hearings has allowed significant policy changes to go unchecked, particularly as the agency retreats from enforcement actions against major crypto firms.
“Despite having a clear obligation to oversee the SEC, the Committee has not held a single hearing with Chairman Atkins,” Waters wrote, pointing to what she called “rapid, significant, and questionable policy shifts” under the current administration.
Waters went on to draw a contrast with the tenure of ex-SEC chairman Gary Gensler, who gave testimony before the committee twice within the first year of his tenure. She noted that the fact that there was no testimony given so far “raises serious questions about a lack of transparency and a lack of accountability.”
Dropped Crypto Cases Draw Scrutiny
Waters referred to the thwarting of several prominent enforcement actions by the SEC against cryptos as one of the most important reasons why she requested a hearing. Waters said that: “The SEC has abandoned enforcement actions against entities and individuals credibly accused of significant violations of US securities laws.”
Among the cases she cited were actions involving Coinbase, Binance, and crypto entrepreneur Justin Sun. Waters also claimed that, in some instances, defendants publicly announced the termination of enforcement actions before the SEC had formally voted on those decisions.
She warned that such moves risk undermining investor confidence and weakening the agency’s ability to deter fraud and market manipulation. Waters said the HFSC must press the SEC to explain how it plans to protect investors under its current approach.
A New Direction Under Chair Atkins
SEC Chair Paul Atkins, who assumed the role in April after his nomination by Donald Trump, has overseen a noticeably more crypto-friendly stance at the agency. Since taking office, Atkins has shelved several lawsuits and investigations, eased rules for crypto exchange-traded funds, and promoted a more collaborative regulatory tone through initiatives such as Project Crypto.
It is argued that this brings clarity and innovation. Waters thinks that this is a retrograde step that is detrimental to market security.
“She also questioned whether political factors are at play in the decision-making at the SEC, which would be troublesome to its independence and to its ability to monitor the markets,” the paper said.
Longstanding crypto critic
Waters has been dissatisfied with the cryptocurrency market and any legislative moves proposed by the Republicans. In the month of October, she declared her disapproval of the granting of amnesty to Binance’s co-founder Changpeng Zhao. At the beginning of 2023, she stated that “the CLARITY Act and GENIUS Act would be the start of a huge wave of fraud and the destruction of finances on a large scale.”
With her call for an oversight hearing on the matter, Waters seeks to compel the required public review of the SEC’s policies on cryptocurrency and return to the enforcement mindset that she finds preferable. Waters asked the committee to take prompt action because it may leave investors exposed to the current complexities arising from the digital asset market.
Highlighted Crypto News Today
Bitcoin Mining Difficulty Ends 2025 at 148.2 Trillion
