Democrats’ 2026 House Odds Add Momentum to Maxine Waters’ Criticism of SEC Crypto Policy

With Democrats holding a 75% chance of winning back the U.S. House of Representatives majority in 2026, according to prediction market Kalshi, new criticism from Representative Maxine Waters toward Securities and Exchange Commission (SEC) Chairman Paul Atkins could gain significant political traction. Waters, the ranking Democrat on the House Financial Services Committee, is intensifying scrutiny of the SEC’s recent shift in crypto enforcement policy amid a broader debate over U.S. digital asset regulation.

Although Congress is currently on winter recess, Waters formally called for Atkins to testify before the House Financial Services Committee. In a letter sent to Republican Chairman French Hill, she questioned the SEC’s decision to dismiss or pause major enforcement actions against prominent crypto firms and individuals, including Coinbase, Binance, and Tron founder Justin Sun. Waters argued that these cases involved credible allegations of securities law violations and that Congress has not adequately examined the SEC’s reasoning for abandoning them or how the agency plans to protect retail investors from fraud and market manipulation.

Waters also raised concerns that some crypto companies publicly announced the end of SEC investigations before the commission officially voted on those decisions. She alleged that Chairman Atkins’ office played an unusually active role in negotiating the termination of these cases, raising transparency and governance questions. The SEC did not immediately respond to requests for comment.

Following President Donald Trump’s return to office, the SEC underwent a leadership change that resulted in a dramatic rollback of crypto-related enforcement. After Atkins was confirmed as SEC chairman, the agency dropped nearly all pending crypto lawsuits and withdrew from several ongoing court battles. Trump has openly positioned himself as pro-crypto, and Atkins has stated that supporting the U.S. crypto industry is a top priority, a stance that critics say risks undermining the SEC’s independence.

Waters argued that Atkins has framed SEC policy as an extension of the administration’s agenda and criticized the agency for relying on staff guidance instead of formal rulemaking. She warned that this approach may violate the Administrative Procedure Act, limit public input, and obscure the influence of industry interests on SEC decision-making.