Crypto Law Fight: Senator Demands Clean Rules After Big Settlement

Senator Warren is stepping up her criticism of the SEC after it dropped a case against Tron founder Justin Sun. She says the agency gave Sun a free pass for investing $90 million in Donald Trump’s crypto ventures. Sun had poured money into the Trump family’s platform, World Liberty Financial, and the SEC agreed to a $10 million settlement with him and his companies. Warren calls this move “a lap dog” for Trump’s allies and urges lawmakers to stop any crypto bills that could help the former president’s financial schemes. The market‑structure bill, known as the CLARITY Act, has already cleared the House and is now in the Senate Banking Committee. Warren sits as the top Democrat on that panel, but the bill has faced hurdles from the crypto industry.Coinbase CEO Brian Armstrong said the current draft could not be supported, leading to a pause in committee action. Bankers worry that adding stablecoin reward rules could hurt credit and push deposits away. Trump and his son Eric have publicly blasted the bill on social media, calling banks’ opposition unfair. The White House has met with crypto and banking leaders three times to discuss the legislation, but it is unclear whether those talks changed anything. Until a new committee vote happens, the bill’s future remains uncertain.