Two leading Democratic senators are pressing SEC Chairman Paul Atkins for answers about the abrupt departure of the agency’s top enforcement official — and what it means for high-profile cases tied to President Donald Trump and his inner circle.
In separate letters sent Monday, Senator Richard Blumenthal and Senator Elizabeth Warren cited Reuters reporting that Judge Margaret Ryan clashed with Atkins and other agency leaders before resigning earlier this month. At the center of the dispute: the direction of the SEC’s enforcement program, including how the agency handled cases involving crypto companies with connections to Trump and his family.
What the senators want to know
Blumenthal, the top Democrat on a Senate investigations subcommittee, asked Atkins to turn over records and communications related to several enforcement cases. His letter specifically named crypto entrepreneur Justin Sun — a major backer of the Trump family’s World Liberty Financial venture — and Binance founder Changpeng Zhao.
“Ms. Ryan’s abrupt departure from the agency raises questions in light of her short tenure and reports that senior leadership intervened to prohibit the Enforcement Division from pursuing cases against cryptocurrency companies,” Blumenthal wrote.
Warren, the top Democrat on the Senate Banking Committee, echoed those concerns. She described Ryan’s exit and the reported circumstances around it as “deeply troubling.” In her view, the departure could undermine the enforcement division’s ability to carry out its mission.
An SEC spokesperson declined to comment on either letter.
Who is Margaret Ryan — and why did she leave?
Ryan served as a former military judge and once clerked for Supreme Court Justice Clarence Thomas. Sources previously told Reuters that she pushed for a more aggressive approach to fraud and misconduct cases. In particular, she took issue with how the agency handled matters involving Sun and billionaire Elon Musk.
Her sudden resignation shook an agency already under strain. The SEC has experienced a wave of staff departures during the Trump administration. At the same time, Republican leaders have shifted enforcement policy toward a softer stance on the crypto industry. The agency has resolved or dismissed several cases against crypto firms and executives, including actions involving both Sun and Zhao.
Crypto and the Trump orbit
Blumenthal’s inquiry fits into a broader probe of illicit cryptocurrency activity. In his letter, he wrote that “crypto-fueled crime has skyrocketed since President Trump came back into office.”
Beyond Sun and Zhao, Blumenthal also requested records tied to any communications between Atkins and members of the Trump family, World Liberty Financial, or the family of the firm’s CEO Zach Witkoff. Notably, Witkoff is the son of Steve Witkoff, the current U.S. special envoy to the Middle East.
Pushback from all sides
The companies and individuals named in the letters pushed back swiftly.
A spokesperson for Binance said the company “has not had any discussion with SEC Chairman Atkins” and that its only contact with commissioners involved “general policy discussions over a year ago, which were unrelated to Binance.”
A spokesperson for World Liberty Financial denied any contact with Atkins or the SEC. “It’s sad to watch Democrats continue their fact-free witch hunt targeting WLF over politics,” the spokesperson said.
Meanwhile, White House Counsel David Warrington defended the president’s conduct. He said Trump “performs his constitutional duties in an ethically sound manner” and has no involvement in business deals that would create conflicts. “To suggest otherwise is either ill-informed or malicious,” Warrington added.
Sun’s company did not respond to requests for comment.