Two Democratic senators have demanded answers from the Securities and Exchange Commission after enforcement chief Margaret Ryan resigned in March, following Reuters reporting that she clashed with SEC leadership over cases involving associates of President Donald Trump.
Senator Richard Blumenthal sent a letter to SEC Chair Paul Atkins asking why the agency dropped a fraud case against Tron founder Justin Sun, a partner of the Trump-backed World Liberty Financial (WLFI) crypto platform, 11 days before Ryan’s March 16 resignation. In a separate letter, Senator Elizabeth Warren questioned whether Ryan “faced resistance” from agency leadership when pursuing cases tied to Trump’s circle.
The inquiries are part of broader Democratic scrutiny of Trump-linked crypto ventures, including WLFI, the Official Trump (TRUMP) memecoin and Trump Media & Technology Group, amid concerns about conflicts of interest and possible preferential treatment. Critics point to other developments in 2025, including dropped SEC crypto investigations and President Trump’s October pardon of former Binance CEO Changpeng “CZ” Zhao, which prompted allegations of insider deals that Zhao’s lawyer denies.
Blumenthal alleged the SEC “may have exercised preferential treatment for financial partners of President Trump against the advice and warnings of senior staff when the agency declined to litigate credible fraud cases.” Reuters also reported Ryan had been considering action involving Tesla CEO Elon Musk prior to her departure.
Blumenthal requested “all records and communications” since Jan. 20, 2025 between the Division of Enforcement and SEC senior leadership relating to potential enforcement actions against crypto companies. He also seeks records of SEC communications with the Trump and Witkoff families; WLFI is led by Zach Witkoff and lists Donald Trump’s sons Eric, Donald Jr. and Barron among founding members.
Blumenthal cited a surge in illicit crypto activity—he said $154 billion in 2025—and alleged Sun’s Tron network played an outsized role. He asserted that while Tron represents roughly a third of payment tokens by some measures, 58% of illicit finance in crypto occurred on Tron’s network in 2024, framing this as evidence of “pay-to-play” risks that could threaten national security and consumer protection. Cointelegraph contacted Tron for comment but received no immediate response.
Warren described Ryan’s short tenure as “troubling,” writing that reports Ryan was not allowed to enforce the law against Trump allies “fit into a broader narrative” that those with money or presidential connections can act with impunity.
The SEC has not publicly detailed reasons for Ryan’s resignation. An agency spokesperson told Cointelegraph the SEC will continue to make “enforcement decisions based on facts, the law, and policy — not politics.”
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