Trump-Backed SEC Shift Sparks Crypto Enforcement Pullback, $TRUMP Token Surges

Under new leadership from Paul Atkins, the SEC is dramatically scaling back its aggressive enforcement approach against cryptocurrency firms. In a sharp reversal from former chair Gary Gensler's penalty-heavy regime, Atkins told the Financial Times he's focusing enforcement on "real fraud" rather than technical violations, invoking his early SEC days under Richard Breeden with the warning: "If you lie, cheat or steal your investors' money like Bernie Madoff, we'll leave you naked, homeless and without wheels."

Since January, the SEC has quietly closed multiple crypto investigations, including several involving platforms that contributed to Trump's inauguration. The former president has emerged as a vocal crypto advocate, recently earning $60 million from a digital asset venture while actively promoting his $TRUMP token. While Atkins declined to comment on specific cases, this deregulatory shift directly aligns with Trump's pro-crypto stance—potentially signaling a new era of regulatory clarity for the digital asset space.