House Democrats Blast SEC Over Dropped Crypto Cases, Ripple Lawsuit Resurfaces
House Democrats have accused the SEC of abandoning several high-profile investigations, including its legal battle with Ripple, which has turned attention back to the agency’s handling of crypto.
The claims, outlined in a January 15 letter to SEC Chairman Paul Atkins, raised questions about why several cases were dropped after favorable court decisions and whether political ties played a role in those decisions. However, according to crypto lawyer Bill Morgan, these cases are folded, done, and dusted.
Lawmakers Say SEC Walked Away from Major Crypto Cases
January 15, 2026 a letter written to him Atkins, House Democrats accused the agency of significantly delaying the use of crypto from early 2025. Lawmakers say the SEC has dismissed or closed more than a dozen crypto-related lawsuits, including actions against Binance, Coinbase, Kraken, and Ripple, despite receiving favorable court rulings in some of those cases.
According to the book, the companies whose charges or investigations were dismissed contributed at least $1 million each to Trump’s inauguration. This raises concerns about ambiguous considerations for the payment system, investor protection and market integrity at a time when digital assets are becoming more deeply integrated with financial markets.
Much of the criticism of the letter centered on the SEC’s decision to seek and maintain a stay in its case. against Justin Sun, which has been around for about 11 months. Unlike all other cases, the SEC case against Justin Sun has not been dismissed. Democratic lawmakers say the move sends a dangerous signal that political connections can influence legislative outcomes.
The letter openly discussed Sun’s reported financial ties to businesses linked to Donald Trump. One of them was Sunday who revealed in September 2025 that he was buying more WLFI tokens worth $10 million from World Liberty Financial (WLFI), a Trump family business.
According to democrats, such situations can reduce public trust in the independence of the SEC. The letter also seeks information related to the SEC’s information on Sun’s relationship with the People’s Republic of China and any individuals or organizations connected to the CCP.
Crypto Lawyer Pushes Back on Ripple Lawsuit Talk
House Democrats’ letter reveals whether political pressure could lead to new action against Ripple and other companies. However, according to Morgan, this is impossible.
Morgan dismissed the idea that the SEC could simply reopen cases it has already prosecuted or closed on similar grounds, pointing to the legal doctrine of res judicata. Under that policy, once a case is decided between the same parties, it cannot be heard again in the same cases.
“Too bad the SEC won’t go against those companies on the same issues again. Res Judicata baby. Live with it fools,” he said.
Still, one unresolved question hangs over the broader debate. Unlike other crypto cases cited in the lawmakers’ letter, the SEC’s action against Justin Sun has not been formally dismissed and could be reviewed at any time.
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