Democrats' Rising Odds of Securing US House Majority Intensify Waters' Critique of SEC Chair on Crypto Policy

With prediction markets indicating a 75% likelihood of Democrats gaining control of the US House in 2026, Representative Maxine Waters has escalated her criticism of Securities and Exchange Commission Chairman Paul Atkins' approach to crypto regulation. Waters, the ranking Democrat on the House Financial Services Committee, has called for Atkins to testify before the committee regarding the dismissal of significant enforcement actions against major digital assets companies, including Coinbase, Binance, and Justin Sun.

In a letter to the committee's Republican chairman, Waters expressed concern over the SEC's rationale for abandoning these cases and its strategy for preventing fraud and manipulation in markets affecting millions of retail investors. The SEC's decision to drop several high-profile cases has sparked controversy, with some companies announcing the terminations before the commission had officially voted on them. Waters has argued that Atkins' office played an unusually active role in negotiating the end to these cases, raising questions about the agency's independence and commitment to protecting investors.

The SEC has not responded to requests for comment on the matter. The regulator's shift in approach under Atkins' leadership has been seen as a significant departure from its previous stance on crypto regulation, with many pending cases being dropped and the agency backing out of several ongoing court disputes. Waters has criticized Atkins for framing the agency's agenda as an instrument of the administration, rather than maintaining its independence as a federal regulator.

She has also raised concerns about the agency's reliance on staff statements rather than formal rules to guide its policy decisions, which she argues undermines the SEC's legal obligations and excludes public input. As the potential chair of the House Financial Services Committee, Waters' critique of Atkins' crypto policy is likely to gain significant attention and could have implications for the future of cryptocurrency regulation in the US.