Paul Atkins, the new SEC chair, has been in his role for less than a month, but he’s already getting pressured.
On Tuesday, during a House Appropriations Committee, which oversees federal agency funding, lawmakers asked about his approach to crypto regulation, the SEC’s halted legal proceedings with Sun, and recent activity involving Trump-linked digital assets.
They especially wanted to know if connections to crypto entrepreneur Justin Sun could pose a problem.
Lawmakers question Justin Sun’s relationship with the president
Rep. Glenn Ivey, D-Md., highlighted events that occurred before Trump’s January inauguration, noting that Sun’s company, Tron bought $30 million worth of tokens from World Liberty Financial (WLFI).
After that, the SEC moved to stay its fraud case against Sun and his companies, including Tron. Now, Trump will host a gala later this week for the top 220 of his memecoin, and Sun just happens to be one of them.
The crypto magnate revealed he is one of those who will be meeting Trump in a post on X early on Tuesday.
“Honored to support @POTUS and grateful for the invitation from @GetTrumpMemes to attend President Trump’s Gala Dinner as his TOP fan!” Sun wrote.
Ivey does not like it. “This, frankly to me, smells very bad,” he said on Tuesday. “My hope would be that the SEC would be investigating that piece.”
Atkins was forced to admit that Sun has an “active case,” but he also noted that the SEC does not classify memecoins as securities. The newly appointed Atkins has promised to do things differently following a less-than-friendly approach under former chair Gary Gensler toward the crypto industry.
Gensler ruled with an iron fist, forcing the agency to take a more cautious approach towards crypto while waging legal war against big names in the industry. Many of those cases have been dropped.
Trump’s upcoming memecoin dinner has drawn significant backlash
President Trump has taken an unorthodox approach since he returned to office, so not many know how to react.
One good example is the fact that he launched a meme just before his inauguration and is now planning to sit down with the token’s top holders for dinner. It is a big deal, considering the bridge it opens up between one of the most powerful men on earth and millionaires with various motives.
The dinner, which is being sponsored by the token’s official backers, has attracted bipartisan backlash in Washington, with lawmakers expressing concerns that the organizers have effectively auctioned off access to Trump. They also worry that attendees like the excited Justin Sun may be looking to use the avenue to curry favor with the president.
Aside from the dinner, Trump is also expected to appear for a private reception that is being held for the 25 biggest holders, a group that will also include Sun.
Sun was widely speculated to be the top $TRUMP memecoin holder for weeks, but he did not confirm his stake in the token until Monday. By revealing his stake, it is believed he is doubling down on his conviction in the Trump family’s burgeoning crypto empire.
Despite the backlash, the dinner is happening, and the White House has repeatedly rejected any conflict-of-interest concerns surrounding the event.
