Senator Elizabeth Warren (D-Mass.) has criticized the U.S. Securities and Exchange Commission for supposedly favoring crypto figures tied to Donald Trump after the agency agreed to drop its case against Tron founder Justin Sun, escalating a growing political fight in Washington over the president’s cryptocurrency connections.
Warren said the SEC’s move raised serious concerns about the agency’s independence as Congress debates digital asset legislation.
“Last month, SEC Chair Atkins denied in front of Congress that the Trump Administration is giving a free pass to crypto billionaires with ties to Donald Trump,” Warren wrote Thursday in a statement. “Justin Sun poured $90 million into Trump’s crypto ventures, and today the SEC agreed to drop its case against him.”
“The SEC should not be a lap dog for Trump’s billionaire buddies, and any crypto legislation moving through Congress must stop the President’s crypto corruption,” she added.
The criticism followed news that the SEC dismissed claims against Sun and the Tron Foundation, while BitTorrent developer Rainberry agreed to pay a $10 million civil penalty to settle related allegations tied to the agency’s enforcement action over the Tron ecosystem.
Sun confirmed the development in a post on X, saying the resolution closes the chapter on the case and that he intends to continue working with regulators as the crypto industry seeks clearer rules.
The outcome also drew criticism from Amanda Fischer, policy director and chief operating officer at financial reform group Better Markets and a former chief of staff to SEC Chair Gary Gensler.
“What an embarrassment to the agency and to this industry,” Fischer wrote in response to Sun’s announcement.
Washington’s scrutiny
Sun’s case is the latest lightning rod in a political debate about Trump’s presence in the digital asset sector and whether it could influence policy decisions in Washington.
Democratic lawmakers have repeatedly questioned regulators about potential conflicts of interest tied to Trump-linked crypto ventures, including World Liberty Financial and other industry investments connected to the former president.
Those concerns have already complicated negotiations over major crypto legislation on Capitol Hill. Democratic lawmakers have cited Trump’s industry ties as a key sticking point in efforts to pass market structure and stablecoin rules, while several committees have pressed regulators about whether enforcement priorities are shifting.
Within the past year, Trump has also pardoned high-profile figures in the crypto industry, including former Binance CEO Changpeng Zhao and Silk Road operator Ross Ulbricht.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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