U.S. Senator Elizabeth Warren has called on the Office of Inspector General (OIG) of the Securities and Exchange Commission (SEC) to investigate potential conflicts of interest involving the Trump Administration and cryptocurrency regulations. In a letter to Deborah Jeffrey, Warren expressed concerns that officials tied to former President Trump may have improperly influenced SEC decisions regarding cryptocurrency policies.
Senator Warren highlighted specific actions by the SEC under the Trump Administration that she believes may have favored Trump's business interests. Among these actions are the halting or suspension of legal proceedings against cryptocurrency firms such as Binance, Coinbase, and TRON, which have connections to Trump donors and business partners. Additionally, she noted new guidance that exempts certain high-risk cryptocurrencies, known as "meme coins," from regulatory scrutiny, potentially benefiting the personal cryptocurrency investments of Trump and the First Lady.
Warren also criticized the SEC for allegedly failing to enforce ethics laws applicable to officials involved in formulating cryptocurrency policies. Her concerns extend to the appointment of a crypto advisor as the SEC Chair, which, she argues, further undermines regulatory oversight.
In her letter, Warren asked the SEC OIG to thoroughly examine all cryptocurrency-related decisions made by the SEC since Trump's inauguration to determine if any actions were influenced by conflicts of interest. She emphasized her belief that individuals connected to Trump could gain from a flourishing crypto sector.
“President Trump, his closest advisors, and his family members all stand to benefit from boosts in the crypto industry,” Warren stated. She urged a comprehensive probe to ensure that the SEC's actions align with federal ethics standards and agency regulations.