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SEC Under Fire as Maxine Waters Demands Accountability for Crypto Policy Changes

Representative Maxine Waters has formally urged a congressional hearing to scrutinize the SEC's recent dismissal of major enforcement actions in the cryptocurrency sector.

Waters expressed concern over the "politicization" of the agency since Chairman Paul Atkins took over, contrasting his leadership with that of former Chair Gary Gensler, who appeared twice in his first year.

Central to her critique is the SEC's withdrawal of enforcement actions against firms like Coinbase and Binance, which Waters argues undermines investor protections.

In her letter, she noted that some cases were dropped before formal votes took place, raising questions about the Commission's decision-making processes.

Waters also highlighted a dramatic reduction in the SEC's enforcement efforts since the Trump administration, with nearly 60% of crypto cases dropped or paused.

She criticized the SEC for relying on informal policy changes rather than established rulemaking, claiming it violates legal procedures and lacks necessary transparency.

Further, she raised alarms about the weakening of regulations designed to safeguard markets and protect retail investors from manipulation.

As Democrats show stronger prospects in upcoming elections, Waters's criticisms may gain traction, potentially impacting the SEC's legitimacy and operations.

She concluded her letter by calling for immediate legislative oversight to ensure the agency remains accountable to American investors.

Investors and industry stakeholders are closely monitoring this situation, as the SEC's future crypto policies could shape the market significantly.