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SEC’s Paul Atkins grilled on crypto enforcement pull-back, including with Justin Sun, Tron

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Crypto’s AI push stalls without a ‘ChatGPT moment,’ Justin Sun says

The top Democrat on the U.S. House Financial Services Committee demanded the chairman of the Securities and Exchange Commission explain during a Wednesday hearing what happened with the agency’s enforcement interest in Tron Foundation founder Justin Sun and whether his ties to President Donald Trump have had an influence.

Representative Maxine Waters highlighted the U.S. securities regulators’ abandonment of almost all of its previous crypto enforcement cases when Trump took over the White House and replaced the agency’s leadership last year. She underlined the case against Sun in which the agency investigated Sun and his company on wide-ranging allegations, including that they’d improperly jacked up the price of their token (TRX).

SEC Chairman Paul Atkins told the committee that he couldn’t discuss individual cases, but he expressed his willingness to have further conversations in a confidential briefing “to the extent the rules allow me to do that.”

Sun was formally accused by the SEC in 2023 of trying to artificially inflate TRX’s trading volume through a so-called “wash trading” scheme, allegedly having his own employees “engage in more than 600,000 wash trades of TRX between two crypto asset trading platform accounts he controlled.” But the agency moved to pause that case in court a year ago “while they consider a potential resolution.” No resolution has yet been announced.

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“Well, while you were exploring a potential resolution, Mr. Sun has been busy ingratiating himself within Trump’s orbit,” Waters said to Atkins, referencing Sun’s ties to the Trump family’s World Liberty Financial Inc.

Waters also flagged a more recent development in which an alleged former girlfriend of Sun suggested publicly that she had evidence of TRX manipulation.

Spokespeople for Tron and Sun didn’t immediately respond to a request for comment on the exchange during Wednesday’s hearing.

“Chairman Atkins, you have said that under your leadership, the SEC will focus on real fraud,” she said. “Does your statement extend to fraud in the crypto market?”

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“Whatever involves securities,” Atkins responded.

His agency last year dropped high-profile enforcement matters against Binance, Ripple, Coinbase, Kraken, Robinhood and several other companies, with its new management criticizing the “regulation-by-enforcement” approach to crypto under the agency’s previous leadership.

Asked by another Democratic lawmaker whether his agency ever protects investors at a cost to Trump’s businesses, Atkins responded, “As far as what the Trump family does or not, I can’t speak to that.”

While Democrats have focused on the SEC’s reversal of its previous crypto enforcement work, Republicans on the committee concentrated on Atkins’ promises that he’ll provide the crypto industry regulations to clarify — alongside the Commodity Futures Trading Commission — how the companies can operate in the U.S.

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Atkins said the agencies are working on rules “consistent with what’s in the Clarity Act that you all passed here in the House, and hopefully what will come out of the joint work that you’re doing with the Senate. So, you know, we will carry that forward, and basically it’ll help give certainty as to where the jurisdiction of the two agencies are.”

As the SEC and CFTC work on that joint effort under their Project Crypto label, the CFTC also recently moved to embrace the new U.S. stablecoin approach by revising an earlier so-called “no action” letter that now clarifies that national trust banks can issue payment stablecoins, expanding the list of eligible tokenized collateral to include the tokens issued by such banks.

Also on Wednesday, the U.S. regulator of credit unions, the National Credit Union Administration, proposed a rule governing how firms can apply to become stablecoin issuers. It’s an opening step toward implementing last year’s Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act — the crypto industry’s first major legislative win.

In the meantime, the crypto sector is now watching a policy race between Atkins’ SEC and Senate lawmakers working on the Clarity Act to regulate U.S. crypto markets. With recent setbacks dragging on the Senate’s progress, Atkins’ agency may take a lead in establishing digital assets rules.

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Read More: House Democrats slam SEC for dropping crypto cases with Trump ties

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Crypto World

Bitcoin Slips as Geopolitical Signals Shift Bitcoin Falls 1%

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Crypto Breaking News

Bitcoin Slips as Geopolitical Signals Shift

  • Bitcoin drops 1% as Trump signals faster end to US-Iran conflict timeline
  • BTC trades near $70,700 while volatility rises amid geopolitical shifts
  • Oil prices climb, offsetting crypto gains as tensions remain unresolved
  • Iran rejects ceasefire terms, adding pressure to global financial markets
  • Crypto derivatives show weakening momentum ahead of major options expiry

Bitcoin declined 1% during early Thursday trading, reflecting uncertainty from evolving geopolitical developments. The asset traded at $70,712, showing limited momentum within a narrow daily range. Meanwhile, traders reacted to reports of a potential shift in US foreign policy direction.

The US administration signaled an intention to shorten the ongoing conflict with Iran. This stance introduced mixed expectations across financial markets and increased short-term volatility. As a result, Bitcoin failed to sustain earlier gains despite recent bullish projections.

At the same time, trading volumes remained subdued, indicating weaker participation in the current market phase. Market activity reflected hesitation, especially as external risks continued to dominate sentiment. Consequently, Bitcoin moved sideways with a slight downward bias.

Oil Prices Rise as Conflict Dynamics Evolve

Oil prices moved higher as geopolitical tensions continued to influence supply expectations. The upward movement erased some gains previously seen in risk assets like cryptocurrencies. This shift highlighted the inverse reaction between commodities and digital assets.

Reports indicated that the US aimed to conclude the conflict within a defined timeframe. However, Iran rejected proposed ceasefire conditions and introduced its own demands. These developments prolonged uncertainty and supported oil price strength.

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Additionally, the proposed conditions included sanctions removal and expanded regional control measures. Such demands complicated negotiations and extended the timeline for resolution. Therefore, energy markets maintained upward pressure amid unresolved tensions.

Derivatives Market Signals Weakening Momentum

Bitcoin derivatives data showed declining open interest over recent hours, signaling reduced market conviction. This drop aligned with broader uncertainty across financial markets. As a result, traders adjusted positions ahead of key expiry events.

Options data indicated that over $16 billion in Bitcoin and Ethereum contracts approach expiration. This large volume created expectations of heightened volatility in the near term. Consequently, short-term price movements remained sensitive to external triggers.

Meanwhile, projections from institutional analysts suggested a potential long-term upside for Bitcoin. However, current market behavior reflected caution due to geopolitical risks. Therefore, near-term sentiment remained mixed despite optimistic forecasts.

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Background and Broader Context

The US administration aimed to balance foreign policy priorities with domestic agendas. Reports indicated a focus on upcoming elections and legislative initiatives. This shift influenced decisions related to the conflict timeline.

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At the same time, global markets responded quickly to any signals of escalation or de-escalation. Digital assets, commodities, and equities showed increased correlation during this period. As a result, geopolitical developments continued to shape market direction.

Overall, the situation remained fluid, with negotiations still uncertain and conditions unresolved. Market participants reacted to each update, causing frequent price adjustments. Consequently, volatility persisted across both traditional and digital asset classes.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Bitcoin Stares Down Recession as BlackRock CEO Joins Oil Price Warnings

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Bitcoin Stares Down Recession as BlackRock CEO Joins Oil Price Warnings

Bitcoin (BTC) faces a new macro test as markets increasingly bet on the US entering recession in 2026.

Key points:

  • Bitcoin could face a new challenge in the form of its first recession after the COVID-19 crash.

  • US recession odds surge as BlackRock CEO Larry Fink warns over oil prices.

  • Bitcoin’s high correlation with “extremely oversold” stocks continues.

Moody’s puts 12-month recession odds near 50%

Data highlighted this week by Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, shows recession odds nearing 50%.

Bitcoin’s next bull run could come courtesy of a US economic downturn, and market participants see the latter as more and more likely this year.

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“Moody’s Analytics raised the probability of a U.S. recession over the next 12 months to 48.6%, while Goldman Sachs increased its estimate to 30%,” Adler noted on X.

Prediction traders agree, with US recession odds reaching 36% on Kalshi — the highest reading since September 2025.

US recession odds for 2026 (screenshot). Source: Kalshi

The US-Iran war and its impact on global oil prices lie at the heart of the surge. Recent claims by both sides about dialogue to end hostilities and fully reopen the Strait of Hormuz have caused confusion throughout risk-asset markets.

“That’s keeping upside pressure on oil prices, which is recently crossing a key threshold historically associated with recession,” trading resource Mosaic Asset Company commented in the latest edition of its regular newsletter, “The Market Mosaic.”

Mosaic said that oil jumping 50% above its long-term trend, a phenomenon now playing out, “has been seen before or during nearly every recession over the past 50 years.”

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“Oil prices are directly correlated to headline inflation, where a $10 increase per barrel can push inflation higher by 0.20% or more,” it added.

Oil price chart with recessions marked. Source: Mosaic Asset Company

Major players echo those concerns, including Larry Fink, CEO of the world’s largest asset manager, BlackRock.

“We’ll have a global recession,” he told the BBC this week about the consequences of Iran staying a “threat” to the global economy, even if the war itself ended.

Bitcoin stays tied to “extremely oversold” stocks

Bitcoin has had little experience of recession in its lifespan of less than 20 years.

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Related: Gold slides as traders eye sub-$50K BTC: Five things to know in Bitcoin this week

In 2020, a US recession from February to April preceded a period of major BTC price upside after BTC/USD initially joined risk assets in a global crash in March.

BTC/USD one-week chart. Source: Cointelegraph/TradingView

As Cointelegraph reported, Bitcoin’s correlation to US stocks has become stronger this year, potentially increasing the potential for a relief bounce.

“While the uncertainty over inflation and the outlook for monetary are broadly weighing across the market, conditions are very favorable to see at least a short-term rally unfold,” Mosaic commented. 

“Various measures of investor sentiment and positioning are pointing to excessive bearishness in the market while breadth metrics are extending to extremely oversold levels.”

S&P 500 chart. Source: Mosaic Asset Company