After Trump’s $1.4 Billion Windfall, SEC Enforcement Slows—Coincidence?

▲ Trump meme coin/Source: Truth Social ©

As estimates suggest that Trump earned $1.4 billion through cryptocurrency ventures, controversy over “regulatory rollback” is spreading as crypto-related prosecutions by the U.S. Securities and Exchange Commission (SEC) have sharply declined.

According to investment-focused outlet FXStreet on February 13 (local time), the SEC’s crypto-related enforcement actions fell by 60% in 2025. Data from Cornerstone Research also showed a 30% decrease in total enforcement cases. In particular, the withdrawal of the lawsuit against Binance and the suspension of the case against Justin Sun have become central points of controversy.

In 2023, Binance’s former CEO Changpeng Zhao pleaded guilty to violating banking laws and paid more than $4 billion to federal authorities. However, in May 2025, the SEC withdrew a separate civil lawsuit, sending a strong signal to the market. Justin Sun was also indicted in 2023 on charges of selling unregistered assets and market manipulation, but the lawsuit was suspended in February 2025 after Paul Atkins took office as SEC Chair. Zhao later received a presidential pardon.

Bloomberg estimated that Trump earned approximately $1.4 billion through cryptocurrency-related businesses, including World Liberty Financial. Democratic lawmakers questioned whether there was a connection between the reduction in enforcement actions and the president’s financial interests, but Atkins denied any intervention by the White House. Nevertheless, critics noted that the timing overlap has placed a burden on regulatory credibility.

Atkins described the move not as “abandoning enforcement,” but as a “recalibration.” He stated that the SEC plans to collaborate with the U.S. Commodity Futures Trading Commission (CFTC) to establish a new regulatory framework, support congressional legislation, and introduce an innovation exemption program that would allow the launch of crypto products under certain conditions. However, critics argue that withdrawing lawsuits while simultaneously encouraging new product launches sends mixed signals to the market.

The hearing highlighted not only partisan conflict but also a structural issue: trust can be undermined when a regulatory body shares interests with the industry it oversees. Observers say whether the SEC’s new direction will promote innovation or fuel criticism of regulatory capture will depend on its future enforcement actions.

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