cryptonewslive

🚨 SEC Chair Faces Pressure Over Stalled Justin Sun Investigation.
The U. S. Securities and Exchange Commission is experiencing increased scrutiny for pulling back on several significant enforcement actions in the crypto space, with the suspension of the investigation into Tron founder Justin Sun becoming a focal point during a heated House Financial Services Committee meeting.

SEC Chair Paul Atkins was rigorously questioned by Democratic representatives, who inquired why the agency had paused its inquiry into Sun despite serious allegations. In 2023, the SEC accused Sun of orchestrating over 600,000 wash trades to artificially inflate the value of the TRX token. However, by 2025, the case was quietly shelved as the agency referenced talks surrounding a “potential settlement. ”

Political Connections Under Examination

Representative Maxine Waters expressed concerns that Sun’s alleged connections to President Donald Trump could have swayed the SEC’s choices. She highlighted Sun's connection to the Trump-associated World Liberty Financial project and questioned if such political affiliations now protect certain cryptocurrency figures from regulatory consequences.

Atkins avoided discussing any specific investigations, citing legal restrictions that prohibit him from publicly addressing particular cases. Nevertheless, he offered to provide updates to lawmakers privately “within the constraints of SEC regulations. ”

The discussion underscored a clear partisan divide. Democrats criticized the SEC for neglecting its responsibility to combat fraud, particularly after it stepped back from enforcement actions involving crucial industry participants like Binance, Ripple, Coinbase, and Kraken. The agency’s new leadership has defended this transition, rejecting what they call the previous administration's approach of “regulation through enforcement. ”

Republicans Advocate for Regulatory Clarity

Republican lawmakers focused more on the SEC’s upcoming rulemaking initiatives rather than enforcement issues. Atkins confirmed that the agency is developing a formal regulatory structure in line with the House-approved Clarity Act, collaborating closely with the Commodity Futures Trading Commission (CFTC) under a joint effort referred to as Project Crypto. The objective is to clearly define oversight duties between the two regulatory bodies.

When questioned about the SEC's continued pursuit of fraud cases within cryptocurrency markets, Atkins simply stated: “Anything that qualifies as securities. ”

Stablecoin Oversight Advances

There is also growing regulatory activity surrounding stablecoins. The CFTC has recently updated its guidance, allowing national trust banks to issue payment stablecoins backed by a broader array of collateral. Simultaneously, the National Credit Union Administration (NCUA) has presented new proposed regulations for managing stablecoin issuer applications.

These advancements are viewed as significant movements toward enacting the GENIUS Act, the first major federal legislation for the cryptocurrency sector, which was passed last year.

Controversy Spans More Than a Single Case

Waters mentioned accusations from a woman identifying herself as Sun’s prior partner, stating that she has proof of TRX price manipulation. Representatives for Tron chose not to respond to these allegations or the congressional hearing.

On a larger scale, Democrats expressed doubts about whether the SEC is prioritizing political factors over safeguarding investors. Atkins refrained from discussing any involvement by businesses associated with the Trump family, restating that he was unable to comment on those issues.

Regulatory Countdown Is Underway

The cryptocurrency sector is intently observing if the SEC will finalize regulations before the Senate progresses with the Clarity Act. Due to recent delays in the legislative process, the SEC may establish the regulatory framework for digital currencies long before Congress takes action.

The hearing highlighted the ongoing challenge in Washington to maintain a balance between fostering innovation and ensuring market integrity. Republicans contend that clear regulations are crucial for retaining blockchain firms in the U. S., while Democrats caution that relaxing enforcement could put retail investors at risk of fraud and manipulation.

Main Points

• Legislators asked why the SEC has halted its case against Justin Sun, expressing worries about potential political influence.
• The SEC intends to implement cryptocurrency rules that align with the Clarity Act in conjunction with the CFTC.
• Oversight of stablecoins is progressing as several regulatory bodies introduce new guidelines.

$BTC

#CryptoNewsLive

#cryptonewslive
Not Pls Follow The Button

Ripple Labs’ RLUSD Finally Launches on Global Exchanges$
Ripple Labs RLUSD Stablecoin and Key Trading Details
In this announcement, Ripple confirmed that the debut will involve key launch partners, which include some of the world’s leading crypto exchanges and platforms.

Upon launching, the token went live on several global cryptocurrency exchanges, including Uphold, MoonPay, CoinMENA, ArchaxEx, and Bitso.

Apart from these trading platforms, Ripple CEO Brad Garlinghouse confirmed that Bullish, Mercado Bitcoin, Bitstamp, Zero Hash, and Independent Reserve will get on the list soon.

The RLUSD launch happened on Ethereum and Ripple’s XRP Ledger (XRPL). Noteworthy, the move to launch Ripple’s stablecoin faced a slight delay because of some regulatory hurdles.

This latest development suggests that the $blockchain firm has made headway with regulators in the United States. On December 17, RLUSD received final approval from the New York Department of Financial Services (NYDFS).

The new stablecoin may evolve to compete for market share with established rivals like Tether (USDT) and Circle’s USDT. Both stablecoins control over 85% of the stablecoin’s market capitalization.

RLUSD is reportedly equipped with features to effectively compete with the two largest stablecoins. Right from conception, Ripple’s new stablecoin was pegged to the US dollar 1:1.
$XRP