SEC Chair Vows to Enforce Conflict Laws on Trump Crypto Deals

“Well, I mean, if there are conflicts of interest, we’ll attempt to root them out then, but lay down standards,” Atkins said in response.

The issue resurfaced later than a New York Times investigation detailed two deals linking World Liberty Financial (WLF), a crypto firm backed by members of the Trump family, to approvals of U.S. artificial intelligence chip exports to the United Arab Emirates. According to the report, UAE-based MGX announced a $2 billion investment in Binance using stablecoins, later revealed to have been conducted with WLF’s newly launched USD1 stablecoin.

Democratic lawmakers have voiced concerns over conflicts involving Trump-linked ventures as Congress debates crypto legislation. The SEC does not have direct jurisdiction over WLF. When asked by The Block if potential conflicts in the Trump administration could affect the SEC’s oversight of crypto markets, Atkins said his agency has “a job to do.”

“There are statutes, and so we will enforce those laws and investigate where it’s indicated and necessary,” he added.

Investor Takeaway

Atkins’ Approach to Crypto Oversight

Atkins, who became SEC chair in April, has adopted a markedly diverse approach from his predecessor Gary Gensler, who argued that most tokens were securities and pursued cases against major platforms. Gensler’s strategy drew criticism as “regulation by enforcement.”

Since taking office, Atkins has promoted measures to ease entry for crypto firms. In June, he said staff were studying an “innovation exemption” that would accelerate approvals for blockchain-based products and services. On Tuesday, he said he expected to implement it by year-end. At Georgetown, he added that the exemption would assist establish a clearer definition of what qualifies as a security.

“That’s the kind of groundwork that we need to give so that lawyers can give opinions so we can give guidance to people as to what they have so they have certainty,” Atkins told the audience.

The SEC has also launched “Project Crypto”, aimed at modernizing existing rules around digital assets. Recent staff statements suggested that most proof-of-stake features fall outside securities rules, though certain liquid staking arrangements could qualify.

Crypto Policy Under Political Scrutiny

The debate over conflicts of interest highlights the political pressures surrounding crypto regulation. Trump family-linked ventures such as WLF have drawn criticism from Democrats, while Republicans have pushed for clearer rules to encourage innovation. The SEC’s evolving stance under Atkins comes as Congress weighs bills that could shift authority over parts of the crypto market away from the commission.

For now, Atkins’ message to investors and lawmakers was consistent: enforcement will follow existing statutes, but new exemptions and projects point to a looser regulatory climate than under the prior chair.