Massachusetts Senator Elizabeth Warren, one of the most outspoken voices in Congress who often links cryptocurrencies to illegal activities, criticized the US Securities and Exchange Commission’s settlement with Tron founder Justin Sun.
In a warning on Thursday, Warren accused the SEC of “giving Sun a free pass” after it “poured $90 million” into crypto investments linked to US President Donald Trump and his family.
Sun has invested millions of dollars through the purchase of tokens in the Trump family’s crypto platform World Liberty Financial, and the SEC has settled an adverse action against the founder of Tron and his companies for $10 million.
“Justin Sun poured $90 million into Trump’s crypto ventures, and today the SEC agreed to drop its case against him,” Warren said. “The SEC should not be a lap dog for Trump’s billionaire friends, and any crypto legislation that passes through Congress should stop the president’s crypto corruption.”
Warren did not specifically refer to the digital asset market structure bill that is moving through the Senate, but the legislation has been the focus of the White House and many pro-crypto lawmakers for months after it was passed by the House of Representatives as the CLARITY Act. The bill, which came out of the Senate Agriculture Committee in January, is being considered in the Senate Banking Committee, where Warren is the ranking Democrat.
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Among the issues related to the market structure bill are provisions on tokenized shares, ethics and stablecoin rewards. The White House held three meetings between officials and representatives from the crypto and banking industries, but it was unclear as of Friday whether the discussions had any impact on the legislation.
Both Trump and his son Eric took to social media this week to criticize banks over their stance on the market structure bill. Some banking organizations claim that the inclusion of provisions on stablecoin rewards in the legislation could disrupt credit and lead to the risk of deposit flight.
In January, the Senate Banking Committee indefinitely delayed a vote on the market structure bill after Coinbase CEO Brian Armstrong said the exchange could not support the legislation “as written.” As of Friday, the agency had postponed the event, which is needed to resolve issues of the securities law before a possible vote in the Senate.
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