Tron (TRX) and Justin Sun Crisis in the US Congress: SEC Chairman Paul Atkins Made a Statement!

The Chairman of the SEC, Paul Atkins, faced tough questions in Congress just a few weeks after taking office.

Atkins, speaking at the House Budget Committee, was asked questions about the memecoin projects associated with President Donald Trump and possible connections with crypto entrepreneur Justin Sun.

Democratic Representative Glenn Ivey pointed out some events that occurred before Trump’s inauguration ceremony in January. Ivey brought up the 30 million dollar token purchase from the decentralized finance firm World Liberty Financial, which stated that it was inspired by Trump, owned by Justin Sun’s Tron company.

The SEC had later suspended the fraud case against Justin Sun and his companies. This development has led to various speculations in the public. Meanwhile, a memecoin associated with Trump is currently trading in the market, and Trump is preparing to hold a special gala for the first 220 memecoin investors within this week.

Ivey said, "Honestly, this situation doesn't smell good to me at all. I hope the SEC looks into this connection."

Atkins noted that the lawsuit regarding Sun is still in an "active" state, reminding that the SEC has not classified memecoins as securities.

Atkins, who was appointed by Trump, stated that a "hostile" attitude was displayed towards the crypto sector during the tenure of his predecessor Gary Gensler, and that the institution has now entered a "new era." During Gensler's term, the SEC filed numerous lawsuits against the sector; however, some of these were later dropped.

In his written statement, Atkins described his plan for cryptocurrency regulations as "setting rules through a warning and comment process."

"During my presidency, my primary goal will be to develop a reasonable regulatory framework that operates with clear rules for the crypto asset markets," he said, adding: "This framework will continue to deter malicious individuals engaging in illegal activities while regulating the issuance, custody, and trading processes."

Republican Representative Chuck Edwards asked whether the SEC's newly established cryptocurrency task force needs additional funding. The task force, created by former acting chairman Mark Uyeda at the beginning of this year and led by Commissioner Hester Peirce, aims to clarify how securities laws apply to cryptocurrency by holding roundtable discussions with industry representatives.

Atkins replied, "I don’t have a definite opinion on this." He added, "The task force consists of existing personnel, and Commissioner Peirce is leading it, so there is no additional budget request."