The latest regulatory changes by the new SEC leadership under Trump are causing concern among government watchdog agencies.
Trump’s crypto empire and recent regulatory changes are attracting attention from several watchdog agencies. On April 14, the Government Accountability Office announced plans to investigate the U.S. Securities and Exchange Commission.
In a letter addressed to Democratic Senators Elizabeth Warren and Mark Warner, the GAO—a nonpartisan agency responsible for government oversight, confirmed it would look into changes implemented by the SEC’s politically appointed leadership. Among these changes are reported plans to cut staff and restrict the agency’s ability to initiate investigations independently.
In February, lawyers at the SEC told Reuters that the new, politically appointed leadership, asked them to ask for permission before launching investigations. At the time, U.S. government watchdog Accountable.US has also raised concerns over these changes, together with US crypto policy in general.
Since Trump’s appointed leadership took power, the SEC has seen hundreds of resignations from staffers. At the same time, the agency was offering lucrative severance packages to staffers who would resign voluntarily.
Trump’s crypto ventures cause corruption concerns
Chief among the concerns are Trump’s various crypto ventures, frequently a target of congressional Democrats. For one, House member Maxine Waters has accused Trump of using his power to become “crypto king.”
Waters stated that Trump was using his power to promote both his Official Trump (TRUMP) and his World Liberty Financial firm to enrich himself. She claimed that Trump made $2 billion from his various crypto ventures, at the expense of ordinary investors.
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Together with Senator Elizabeth Warren, Waters also raised concerns over corruption. Waters and Warren explained that WLFI presents an opportunity for foreign-owned crypto firms to trade their crypto for influence on US politics. For instance, she referenced Tron Founder Justin Sun’s entry into WLFI as an advisor, after a $30 million investment.
Read more: Trump-backed WLFI spent $100m on crypto buys
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