đŸ’„ House Democrats Question SEC Cryptocurrency Case Withdrawals ⚖

$FRAX | $RIVER

House Democrats are raising suspicions that $1 million inauguration donations may have influenced the SEC’s decision to suspend enforcement actions against major crypto firms including Ripple, Binance, Coinbase, and Kraken.

đŸ”č What Happened

‱ On Jan 15, 2026, lawmakers sent a letter to SEC Chair Paul Atkins, highlighting that the SEC dismissed or stayed over a dozen cryptocurrency-related cases since early 2025.

‱ The letter cites donations from companies whose cases were withdrawn, linking them to Trump’s inauguration in 2021–2025.

‱ Particular focus: SEC’s 11-month litigation stay against Justin Sun, during which Sun announced plans to buy $10M in WLFI tokens from the Trump family’s business.

‱ Lawmakers also questioned ties between these companies and China/CCP-linked entities.

đŸ”č Legal Perspective

‱ Legal experts, including Bill Morgan, argue that many of these cases cannot be reopened due to res judicata — the principle preventing re-litigation of settled matters.

‱ Only certain cases, like Sun’s ongoing litigation, remain open for potential review.

‱ Morgan bluntly notes:

“It’s unfortunate that the SEC can’t go after those companies again on the same matter. It’s res judicata. Just accept it, you fools.”

đŸ”č Why This Matters

‱ Raises concerns about political influence on regulatory enforcement

‱ Could affect market sentiment if any cases are revisited

‱ Highlights the fragility of trust between regulators and crypto firms

⚡ Takeaway:

While lawmakers suggest a pay-to-play scenario, most settled cases are legally closed, limiting the SEC’s ability to act again — except for ongoing or unsettled actions.

#CryptoRegulation #SEC #Ripple #PoliticalInfluence #BinanceSquare