Lawmaker Says SEC Pullback Leaves Crypto Investors at Risk

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 11, 2026

Key Takeaways

Lawmakers questioned SEC Chair Atkins after enforcement activity dropped by about 60% under the current administration;
Lynch said the SEC now avoids major crypto cases and that this shift reduces oversight as risks in the market grow;
Concerns rose after reports showed a UAE-backed firm bought 49% of WLFI, a project linked to the Trump family.

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Lawmaker Says SEC Pullback Leaves Crypto Investors at Risk

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During a February 11 hearing, members of Congress questioned SEC Chair Paul Atkins about how the agency handles crypto-related cases.

Representative Stephen Lynch said the number of enforcement actions has fallen since President Donald Trump appointed Atkins as chair.

According to Lynch, the agency is bringing about 60% fewer cases than before. He argued that this change has weakened oversight at a time when investors face growing risks in the crypto market.

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Lynch noted that the regulator has become less willing to pursue complex disputes involving major crypto businesses.

The discussion then moved to concerns about financial ties involving projects linked to the Trump family. Lynch raised questions about World Liberty Financial (WLFI), a decentralized finance platform linked to the family, and the meme coins they promoted.

He noted that recent reporting shows Aryam Investment 1, an investment firm from Abu Dhabi backed by Sheikh Tahnoon bin Zayed Al Nahyan, purchased 49% of the company behind WLFI. Lynch said that foreign involvement of this scale should prompt closer review.

He warned that a lack of clear enforcement can harm users and reduce confidence in the market. He pointed out that crypto prices have dropped in recent weeks and said the public is losing trust.

The SEC recently issued updated guidance on how tokenized securities are defined and treated under existing laws. What did the agency say? Read the full story.