House Democrats have accused the SEC of abandoning many high-profile investigations, including its legal battle with Ripple, which has brought attention back to the agency’s handling of crypto enforcement. 

The claims, which were outlined in a January 15 letter to SEC Chair Paul Atkins, raised questions about why several cases were dropped after favorable court rulings and whether political relationships played any role in those decisions. However, according to crypto attorney Bill Morgan, these cases are wrapped up, done, and dusted.

Lawmakers Say SEC Walked Away From Major Crypto Cases

In a January 15, 2026 letter addressed to Atkins, House Democrats accused the agency of dramatically scaling back crypto enforcement since early 2025. The lawmakers claimed the SEC has dismissed or closed more than a dozen major crypto-related cases, including actions against Binance, Coinbase, Kraken, and Ripple, despite having received favorable court rulings in some of those matters. 

According to the letter, companies whose cases or investigations were dismissed donated at least $1 million each to Trump’s inauguration. This raises concerns about an unmistakable inference of a pay-to-play scheme, investor protection and market integrity at a time when digital assets are starting to become deeply intertwined with capital markets.

Much of the letter’s criticism was focused on the SEC’s decision to seek and maintain a stay in its case against Justin Sun, which has now been in place for about 11 months now. Unlike all the other cases, the SEC’s case against Justin Sun has not yet been dismissed. Democratic Lawmakers claimed this move sends a dangerous signal that political connections may influence enforcement outcomes. 

The letter explicitly referenced Sun’s reported financial ties to businesses linked to Donald Trump. One of which was Sun’s reveal in September 2025 that he was purchasing an additional $10 million worth of $WLFI tokens from World Liberty Financial (WLFI), a Trump family business. 

According to the democrats, such circumstances could undermine public trust in the SEC’s independence. The Letter also seeks information related to the SEC’s knowledge of Sun’s ties to the People’s Republic of China and any CCP-affiliated persons or entities.

Crypto Lawyer Pushes Back On Ripple Lawsuit Talk

The letter by House Democrats brings into focus whether political pressure could lead to a new action against Ripple and other firms. However, according to Morgan, this is not possible.

Morgan dismissed the idea that the SEC could simply relaunch cases it has already litigated or closed on the same grounds, pointing to the legal doctrine of res judicata. Under that principle, once a matter has been conclusively decided between the same parties, it cannot be retried on identical issues.

“Too bad the SEC can’t go against those companies again on the same matters. Res Judicata baby. Live with it fools,” he said.

Still, one unresolved question hangs over the broader controversy. Unlike the other crypto cases cited in the lawmakers’ letter, the SEC’s action against Justin Sun has not been formally dismissed and can be revisited anytime.

Featured image from Getty Images, chart from TradingView

Bitcoin Magazine

Senate Democrats, Crypto Industry to Resume Talks After Market Structure Bill Delay

U.S. Senate Democrats are reportedly set to reopen talks with representatives from the cryptocurrency industry on Friday, according to people familiar with the plan speaking to CoinDesk. 

All this comes less than two days after a last-minute postponement of a key Senate Banking Committee hearing on sweeping digital asset legislation.

The call follows Wednesday night’s abrupt cancellation of the committee’s planned markup of the long-negotiated crypto market structure bill, which had been expected to divide regulatory oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

The delay came after Coinbase, the largest U.S.-based crypto exchange, withdrew its support for the draft legislation, citing concerns over stablecoin rewards programs and what it viewed as excessive authority granted to the SEC.

Coinbase CEO, Brian Armstrong, said that banks are trying to “kill their competition” with the crypto market structure legislation. “Crypto companies should be allowed to compete and offer loans just like banks,” Armstrong said.

Thursday marked a pause in public activity after the cancellation, but lawmakers and industry participants say negotiations are far from over. 

Democrats from both the Senate Banking Committee and the Senate Agriculture Committee — which oversees the CFTC — are expected to join Friday’s call, along with representatives from crypto policy advocacy groups in Washington, according to reports. 

The Banking Committee had been scheduled to hold an all-day session Thursday to debate amendments and vote on whether to advance the bill. 

That plan unraveled late Wednesday after Coinbase CEO Brian Armstrong said the company could not support the current version of the legislation. Shortly thereafter, Senate Banking Committee Chair Tim Scott, R-S.C., postponed the hearing.

Lummis: Senate is closer than ever

Despite the setback, several lawmakers involved in the negotiations said discussions will continue. In a post on X, Sen. Cynthia Lummis, R-Wyo., a leading crypto advocate in the Senate, said lawmakers were “closer than ever” to reaching agreement.

“Everyone is still at the negotiating table, and I look forward to partnering with [Chairman Scott] to deliver a bipartisan bill the industry — and America — can be proud of,” Lummis wrote Thursday.

Sen. Bill Hagerty, R-Tenn., echoed that optimism, saying he remained “confident” that lawmakers could reach a consensus “in short order.”

“I am fully committed to continuing this important work with my colleagues on market structure and look forward to passing legislation that ensures this innovative technology flourishes in the United States for decades to come,” Hagerty said.

Industry reaction to Coinbase’s withdrawal has been mixed. While Armstrong’s comments intensified scrutiny of the bill, other crypto executives and advocacy groups urged lawmakers to keep pushing forward.

Kraken co-CEO Arjun Sethi said abandoning negotiations now would worsen regulatory uncertainty for U.S. crypto firms. “Walking away now would not preserve the status quo in practice,” Sethi said in a post on X. “It would lock in uncertainty while the rest of the world moves forward.”

A major point of contention in recent negotiations has been whether stablecoin issuers should be permitted to offer rewards or yield programs — an issue that has drawn pushback from bank lobbyists and some Democrats concerned about consumer protection and competition with traditional deposits.

While the Banking Committee’s markup has been postponed, the Senate Agriculture Committee is still expected to hold a hearing on the legislation on January 27, after previously pushing back its own earlier session. Ultimately, both committees’ work would need to be merged before the bill could advance to the full Senate.

Some analysts see the delay as a strategic pause, with Benchmark’s Mark Palmer saying it could help lawmakers build broader bipartisan support and ultimately strengthen what he called a potentially historic overhaul of U.S. financial regulation. 

Others are more doubtful: TD Cowen warned that bridging Democratic demands and Coinbase’s objections may be difficult, especially since some disputed provisions were already concessions to Democrats, while election-year timing and the Senate’s 60-vote threshold add further hurdles. 

This post Senate Democrats, Crypto Industry to Resume Talks After Market Structure Bill Delay first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

In a critical week for the cryptocurrency industry, following the delayed markup of the Crypto Market Structure bill (CLARITY Act), House Democrats are calling on the Securities and Exchange Commission (SEC) chair, Paul Atkins, to reinstate enforcement actions against crypto firms. 

The letter, dated January 15, was signed by Representatives Maxine Waters, Sean Casten, and Brad Sherman, who expressed concerns regarding the SEC’s recent retreat to investigate and prosecute alleged violations related to “digital asset securities.”

House Democrats’ Allegations

The representatives highlighted that since January 2025, the SEC has dismissed or closed more than a dozen cases involving crypto-related activities, including litigations against major players like Binance, Coinbase, and Kraken. Just this week, the SEC also closed its case against the Zcash Foundation.

In their letter, the lawmakers alleged that given the industry’s “troubling history of harming investors,” the SEC’s decision to pull back raises serious questions about its priorities and effectiveness. They warned that this shift puts both investors and the broader US economy at considerable risk.

Moreover, the representatives highlighted unprecedented lobbying and monetary contributions to political figures, including President Trump and his associates, from the digital asset sector. They pointed out that this could have influenced the SEC’s decision to abandon a majority of its crypto enforcement actions. 

Alleged Conflicts Of Interest Between Trump And Crypto 

These concerns follows months of allegations from the Democratic Party suggesting conflicts of interest between the Trump administration and the crypto industry, particularly highlighted by last year’s pardon for former Binance CEO Changpeng Zhao (CZ) and connections to the Trump-affiliated World Liberty Financial (WLFI).

According to the lawmakers, the SEC’s choice to walk away from these enforcement cases has raised suspicions of a possible pay-to-play dynamic. They argued that allowing violators of securities laws to escape without repercussions contradicts the SEC’s primary responsibility. 

Furthermore, the Representatives claim that recent statements by Chair Atkins, who said that ‘most crypto tokens are not securities’, have caused confusion.

The Democrats further pointed out that this lack of enforcement against digital assets leaves investors “vulnerable” and allegedly fails to protect them from potential violations in the market.

Featured image from DALL-E, chart from TradingView.com

• The Federal Emergency Management Agency is at the center of new calls to replace Homeland Security Secretary Kristi Noem. In a letter to President Donald Trump on Wednesday, 14 House Democrats said Trump should fire Noem over what they say are damaging cuts to FEMA’s workforce. They also said Noem’s policy of signing off on all spending over $100,000 is slowing down FEMA’s disaster response efforts. The letter comes a day after more than 50 House Dems filed articles of impeachment against Noem, citing her handling of the Trump administration’s immigration crackdown.
  (Democrats' letter on Noem - Rep. Frank Pallone (D-N.J.))
• The Congressional Budget Office estimates that President Donald Trump’s plan to rebrand the Department of Defense as the Department of War would cost taxpayers between $10 million and $125 million. The total cost of rebranding the Defense Department could vary depending on how broadly and quickly the name change is implemented across the department. Immediately replacing signs and stationary would be more expensive than gradually implementing those changes “as existing stocks are exhausted.” The Defense Department did not provide information to the CBO on the scope of its implementation plan.
  (Renaming the Defense Department could cost up to $125 million - Congressional Budget Office)
• The Defense Department is overhauling its big data analytics platform known as Advana. Defense Secretary Pete Hegseth said the evolution of Advana over the last several years has led to a “complex technical and programmatic architecture.” Hegseth directed the chief digital and artificial intelligence officer to restructure Advana into three distinct programs. This restructuring will help accelerate progress toward a clean DoD financial audit in 2028.
  (DoD moves to restructure its Advana program - Defense Department)
• GSA's new administrator set the tone for how he views the agency's role across government. Ed Forst has officially been on the job as GSA's administrator for about 15 days. But he's been learning about the agency for several months. During that time, Forst, speaking at the Coalition for Common Sense in Government Procurement's winter conference yesterday, said he understands the role GSA should be playing across government. "Let's advance mission and let's have the engine room, what's behind the curtain, consolidate and get even better. That's where I see GSA in the federal government. We are the engine room." Forst said.
  (Forst calls GSA the 'engine room' of government - CGP)
• A bipartisan group of lawmakers are looking to give federal correctional officers a major salary boost. A new bill introduced in both the House and Senate aims to increase pay rates for Bureau of Prisons staff by 35% across the board. Authors of the bill say it would help address longtime staffing shortages at the agency. The American Federation of Government Employees, which represents thousands of BOP workers, has expressed support for the bill.
  (Federal Correctional Officer Paycheck Protection Act - Sens. Jeanne Shaheen (D-N.H.) and David McCormick (R-Pa.))
• The Department of Health and Human Services is rescinding all layoffs for employees at a workplace safety agency. HHS last spring sent layoff notices to about 1,000 employees at the Centers for Disease Control and Prevention’s National Institute for Occupational Safety and Health. NIOSH focuses on workplace safety and health standards. Those layoffs targeted about 90% of NIOSH’s staff. HHS walked back some layoffs last year, but said it’s now reinstating every NIOSH employee who received layoff notices. Hundreds of these terminated employees have been on paid administrative for the past nine months.
  (HHS reinstates all laid-off employees at workplace safety agency NIOSH - Federal News Network)
• Five years in the making, the Office of Federal Procurement Policy will finally kick off a new effort this winter to review procurement laws and how they apply to commercial buying. Matthew Blum, OFPP's deputy administrator, said the requirement is from the 2019 defense authorization bill and will provide OFPP with a big opportunity to conduct a comprehensive review. Congress told OFPP and the FAR Council to determine if commercial buying has been hampered by the improper application of federal procurement laws. Blum said this review will provide OFPP with a big opportunity to conduct a comprehensive review in the spirit of streamlining and restoring common sense to procurement.
  (OFPP to review procurement laws' impact on commercial buying - CGP)
• Hundreds of federal employees are calling for the restoration of their collective bargaining rights. At a union rally on Wednesday, hundreds gathered outside the Capitol building to urge a Senate vote on the Protect America’s Workforce Act. After the legislation cleared the House in December, federal unions have been pushing senators to take up the companion bill. If enacted, the act would restore collective bargaining for an estimated two-thirds of federal agencies, effectively reversing President Trump’s orders for most agencies to terminate their federal union contracts.
  (Federal union, employees urge Senate to take up bill restoring collective bargaining - Federal News Network)
• The Postal Service’s regulator is setting limits on how often the agency can set higher prices for its mail products. The Postal Regulatory Commission said that starting in March, USPS can only raise mail prices once per year. This limit will remain in place through September 2030. USPS has generally been raising mail prices each January and July. The regulator eased restrictions on USPS prices in December 2020, when the agency was reeling from the COVID-19 pandemic and was months away from running out of cash.
  (Order adopting rules limiting frequency of rate increase - U.S. Postal Regulatory Commission)
• The White House said the new U.S. Tech Force is generating a lot of interest. More than 35,000 Americans have expressed interest in serving in the Tech Force. That’s according to Office of Science and Technology Policy Director Michael Kratsios. “That's insane. That is incredible. That is something we should all be celebrating, this entire committee. The fact that we have so many great Americans that want to step in, move their families and their lives to D.C. to solve these problems for Americans," he said. Testifying before the House Committee on Science, Space and Technology Wednesday, Kratsios said the tech force has unique buy-in from private sector companies. He brushed off criticism that the Trump administration spent the past year cutting many tech-focused staff, including at the former U.S. Digital Service.
  (Hearing with Michael Kratsios - House Committee on Science, Space and Technology)
• Federal agents have searched the home of a Washington Post reporter as the latest step in their investigation into a contractor accused of mishandling classified information. The FBI took the unusual step of serving a search warrant on a journalist as part of its investigation into a federal contractor who’s accused of taking classified information home. The newspaper said federal officials have given assurances that neither the Post nor the reporter, Hannah Natanson, are targets of the investigation. Attorney General Pam Bondi said the search was conducted at the request of the Pentagon, which reportedly told the Justice Department that the contractor had leaked classified information to Natanson.
  (Washington Post reporter's home searched by the FBI - Associated Press)

The post House Democrats call for DHS Secretary to be replaced first appeared on Federal News Network.

© AP Photo/Kevin Wolf

A planned Senate Banking Committee legislation markup has been postponed, as Coinbase CEO Brian Armstrong has withdrawn his support for a market structure bill which seeks to codify federal regulations over crypto, stablecoins, and DeFi markets.

Based on reports, this unexpected withdrawal sharpened existing tensions between senators on debates of this bill and lawmakers who were trying to revamp critical phrases.

Republicans’ Concerns In Oversight

The Republicans in the Senate, under the leadership of Sen. Tim Scott, have strongly countered. They have expressed reservations about whether it is intended to help ordinary investors or just a few companies.

While some representatives expressed their concerns that broad oversight authority could stymie growth in addition to proposed net yields for stablecoins, reports have indicated that Republicans want more defined enforcement authority in opposition to broad regulatory language.

Crypto builders need clear rules of the road.

Over the past five years, Republicans, Democrats, and the Trump Administration have worked closely with members across the crypto industry to protect decentralization, support developers, and give entrepreneurs a fair shot.

​At its…

— Chris Dixon (@cdixon) January 15, 2026

Bitcoin Unfazed By The Standoff

Despite the confusion, crypto prices remained firm. Bitcoin held its ground and climbed 1.5%. The top crypto asset retained its grip on the $96,000 level, while other top cryptocurrencies like Ethereum and USDT likewise notched similar gains in the last 24 hours, based on the latest market tracking figures.

Meanwhile, investors followed speeches and congress sessions. Market volatility heightened. Some investors opted to go to the sideline position as lobbyists and exchanges sought to shape the draft that will come next.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities – DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

As a response to the new draft bill issued by the Senate, several industry representatives vocally objected to its provisions and expressed their belief that it could have a negative impact on tokenized equities and Decentralized Finance.

In fact, there are enough concerns in the blockchain sector raised by Armstrong, that he stated he would prefer to see no bill than see a bad bill passed, indicating that even some members of his industry agree with Republican concerns regarding possible overreach by Congress.

These industry groups said they will likely withdraw their support unless the Senate makes the necessary changes to allow for continued innovation and cross-border competition regarding blockchain technology.

Negotiations Continue To Take Place Behind Closed Doors

Some Senate leaders still want to move toward a committee vote, even though disagreement remains deep. Republican and Democratic legislators are currently negotiating or trading potential amendments on issues such as stablecoin legislation, DeFi protections and investor protections in an effort to reach an agreement on an acceptable version of the bill by both parties.

Democrats have identified a need to address regulatory issues regarding ethics, potential Money Laundering, and DeFi over-regulation as top priorities. On the other side of the aisle, the Republican Party continues to push for legislation that clearly defines the guardrails for federal regulators regarding blockchains.

As a result of ongoing negotiations, there is currently no set timeline for a Senate floor vote on the new legislation.

Featured image from Unsplash, chart from TradingView

Democratic lawmakers in Delaware last week performed what has become an annual legislative ritual by introducing measures that would legalize recreational marijuana.

And, as per recent tradition, their biggest obstacle remains the most senior member of their own state party. 

The Delaware News Journal reports that members of the state House of Representatives introduced a pair of bills on Friday “to legalize and create a recreational marijuana industry in Delaware, setting up a likely fight within the Democratic Party this legislative session.” 

The anticipated intra-party feud centers around Democratic Gov. John Carney, who has long been opposed to marijuana legalization and has stymied efforts by Democrats in the legislature to end the prohibition on pot. 

Last year, Carney vetoed a bill that would have legalized recreational pot in the state. 

Despite holding a majority in each chamber of the state General Assembly, Democratic lawmakers were unable to override Carney’s veto.

“[The legalization bill] would, among other things, remove all penalties for possession by a person 21 years of age or older of one ounce or less of marijuana and ensure that there are no criminal or civil penalties for transfers without remuneration of one ounce or less of marijuana between persons who are 21 years of age or older,” Carney said in a statement following his veto.

“I recognize the positive effect marijuana can have for people with certain health conditions, and for that reason, I continue to support the medical marijuana industry in Delaware,” he continued. “I supported decriminalization of marijuana because I agree that individuals should not be imprisoned solely for the possession and private use of a small amount of marijuana—and today, thanks to Delaware’s decriminalization law, they are not.”

“That said, I do not believe that promoting or expanding the use of recreational marijuana is in the best interests of the state of Delaware, especially our young people,” Carney added. “Questions about the long-term health and economic impacts of recreational marijuana use, as well as serious law enforcement concerns, remain unresolved.”

Democrats who are backing the two bills introduced in the state House last week are hopeful that Carney will eventually come around.

“My hope is that with continued open dialogue with the governor’s office, that will help alleviate a veto,” Democratic state House Rep. Ed Osienski, one of the sponsors of the legislation, told the Delaware News Journal. “I have more support from my members … for a veto override, but I’m hoping it doesn’t come to that.”

According to the outlet, a “Carney spokeswoman said Friday that the governor’s views on marijuana have not changed.”

According to the Delaware News Journal, the bill dedicated to removing all penalties for possession would “require a simple majority or 21 votes.”

The other bill “would create a framework to regulate the growth, sale and possession of weed,” essentially treating pot like alcohol, and would require “a three-fifths vote because it deals with revenue and taxation,” the Delaware News Journal reports.

The measures also include social equity provisions aimed at enhancing opportunities in the new marijuana industry to individuals from communities who have been historically targeted by anti-drug policies.

The News Journal has more details on the two proposals:

“Delawareans would buy marijuana from a licensed retail marijuana store. The bill would allow for up to 30 retail licenses to be distributed within 16 months of the legislation going into effect. The process will be competitive, with prospective retailers being rewarded for providing good salaries and benefits and hiring a diverse workforce.”

The post Delaware Lawmakers Renew Effort To Legalize Pot appeared first on High Times.