Home Democrats have accused the SEC of abandoning many high-profile investigations, together with its authorized battle with Ripple, which has introduced consideration again to the company’s dealing with of crypto enforcement.
The claims, which had been outlined in a January 15 letter to SEC Chair Paul Atkins, raised questions on why a number of instances had been dropped after favorable courtroom rulings and whether or not political relationships performed any function in these choices. Nonetheless, in accordance with crypto lawyer Invoice Morgan, these instances are wrapped up, accomplished, and dusted.
Lawmakers Say SEC Walked Away From Main Crypto Circumstances
In a January 15, 2026 letter addressed to Atkins, Home Democrats accused the company of dramatically scaling again crypto enforcement since early 2025. The lawmakers claimed the SEC has dismissed or closed greater than a dozen main crypto-related instances, together with actions in opposition to Binance, Coinbase, Kraken, and Ripple, regardless of having obtained favorable courtroom rulings in a few of these issues.
In line with the letter, corporations whose instances or investigations had been dismissed donated at the least $1 million every to Trump’s inauguration. This raises issues about an unmistakable inference of a pay-to-play scheme, investor safety and market integrity at a time when digital property are beginning to turn into deeply intertwined with capital markets.
A lot of the letter’s criticism was targeted on the SEC’s determination to hunt and keep a keep in its case in opposition to Justin Solar, which has now been in place for about 11 months now. In contrast to all the opposite instances, the SEC’s case in opposition to Justin Solar has not but been dismissed. Democratic Lawmakers claimed this transfer sends a harmful sign that political connections could affect enforcement outcomes.
The letter explicitly referenced Solar’s reported monetary ties to companies linked to Donald Trump. Considered one of which was Solar’s reveal in September 2025 that he was purchasing an additional $10 million value of $WLFI tokens from World Liberty Monetary (WLFI), and Trump household enterprise.
In line with the democrats, such circumstances may undermine public belief within the SEC’s independence. The Letter additionally seeks data associated to the SEC’s information of Solar’s ties to the Folks’s Republic of China and any CCP-affiliated individuals or entities.
Crypto Lawyer Pushes Again On Ripple Lawsuit Discuss
The letter by Home Democrats brings into focus whether or not political strain may result in a brand new motion in opposition to Ripple and different companies. Nonetheless, in accordance with that Morgan, this isn’t attainable.
Morgan dismissed the concept that the SEC may merely relaunch instances it has already litigated or closed on the identical grounds, pointing to the authorized doctrine of res judicata. Underneath that precept, as soon as a matter has been conclusively determined between the identical events, it can’t be retried on similar points.
“Too dangerous the SEC cannot go in opposition to these corporations once more on the identical issues. Res Judicata child. Reside with it fools,” he said.
Nonetheless, one unresolved query hangs over the broader controversy. In contrast to the opposite crypto instances cited within the lawmakers’ letter, the SEC’s motion in opposition to Justin Solar has not been formally dismissed and may be revisited anytime.
Featured picture from Getty Photos, chart from TradingView
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