During the House Appropriations Committee meeting, which supervises the funding of federal agencies, Rep. Glenn Ivey, a Democrat from Maryland, highlighted certain events preceding Trump’s January inauguration. He noted that Tron, a company owned by Sun, had purchased $30 million in tokens from World Liberty Financial—a DeFi company supposedly inspired by the former president.

Subsequently, the SEC decided to suspend its fraud lawsuit against Sun and his businesses, including Tron, effectively putting it on hold. Alongside this, a memecoin associated with Trump has been in circulation, and a special gala for the top 220 memecoin holders is planned for later this week. Sun declared his participation as one of these holders in a post on X early Tuesday. “Delighted to back @POTUS and thankful for the invitation from @GetTrumpMemes to attend President Trump’s Gala Dinner as his TOP fan!” Sun posted.

Ivey expressed concern over these events, stating, “This, in my opinion, reeks of impropriety. I would hope that the SEC is looking into this matter.” Atkins referred to Sun’s case as an “active case” and emphasized that the SEC does not classify memecoins as securities.

Atkins, appointed by Trump, has announced a “new day” for the SEC after the previous chair, Gary Gensler, adopted a less welcoming attitude towards the crypto industry. Gensler’s tenure saw a cautious approach to crypto and multiple charges against industry leaders. Many of these cases were later dismissed. Atkins declared in his prepared testimony that his approach to crypto regulation would be through notice and comment rulemaking rather than regulation through enforcement.

During the hearing, Rep. Chuck Edwards, a Republican from North Carolina, asked Atkins about the funding requirements of the SEC’s new crypto task force. Led by Commissioner Hester Peirce, the task force was established earlier this year by former acting chair Mark Uyeda with a mission to conduct industry roundtables and clarify application of securities laws to crypto. “I’m not entirely sure,” Atkins replied, “It’s staffed by current employees and Commissioner Peirce is leading it, so it doesn’t require any additional funding.”

Disclaimer: The Block is an independent news outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently and aims to deliver objective, timely, and impactful information about the crypto industry. This article is not meant as legal, tax, investment, financial, or other advice.

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Sarah Milby, the trade group’s policy chief, will assume the role of interim CEO until Mersinger officially takes the helm on June 2. Kristin Smith, the current CEO of the Blockchain Association, is stepping down this Friday to move to the Solana Policy Institute.

Both the CFTC and Mersinger’s office have yet to comment on the matter. The Blockchain Association, however, confirmed that Mersinger’s tenure at the CFTC will end on May 30.

Former President Joe Biden appointed Mersinger, a Republican, as a commissioner in 2022. She was among the potential candidates to lead the CFTC until former President Donald Trump chose ex-official and crypto executive Brian Quintenz as chairman. Trump, during his campaign, pledged to support the crypto industry and facilitate the adoption of digital assets.

In his first week in office, Trump established a cryptocurrency working group to suggest digital asset regulations. In March, he signed an executive order to create a federal bitcoin reserve. Now, the crypto industry is lobbying Congress to pass new regulatory rules for cryptocurrencies.

Last week, an effort to establish a regulatory framework for stablecoins, a crypto type linked to the U.S. dollar, fell through in the U.S. Senate. This setback has added new urgency to the industry’s push for legislative change.

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Originally proposed in July 2024, the bill failed to gain traction due to a lack of bipartisan support and doubt about its practicality. As a result, it was effectively “shelved” at the conclusion of the 2023-2024 congressional session.

To keep the Bitcoin Act alive, Lummis must reintroduce it during the current Congress. Any bill not passed in a congressional session needs to be reintroduced in the subsequent session to remain under consideration.

Last week, President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve. This action aligns with some of the Bitcoin Act’s objectives but does not mandate new Bitcoin purchases by the government. Instead, it sets the guidelines for managing confiscated assets.

David Bailey, the CEO of Bitcoin Inc, believes Trump’s executive order is only the initial move. The following step is to advocate for congressional legislation that would cement the establishment of a strategic Bitcoin reserve.

According to Bailey, “People are overlooking that the SBR isn’t just an executive action or legislative initiative… we need both. The executive action paves the political path and signals to Congress that this is a priority.”

“The Bitcoin Act’s time has come,” he concluded.

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