The New York Times has reported that President Donald Trump and his family may have financially benefited from Trump crypto payments linked to the settlement or rollback of several cryptocurrency enforcement cases during his second term. The investigation suggests that some legal reversals coincided with political donations or business connections tied to the Trump family, raising questions about selective enforcement.
According to the report, a significant number of crypto cases overseen by the U.S. Securities and Exchange Commission (SEC) were either paused, reduced, or dismissed after Trump returned to the White House. Investigators found that more than 60 percent of crypto-related enforcement actions active at the start of his second term were affected, a rate far higher than in other industries.
SEC Crypto Enforcement Rollbacks Under Trump
The Times noted that the SEC rarely withdraws or scales back enforcement actions in clusters, making the pattern in crypto cases particularly unusual. In contrast, enforcement actions in sectors outside cryptocurrency reportedly continued at normal levels during the same period.
One high-profile example cited in the report involves Ripple Labs. After years of litigation, the SEC sought to reduce a court-ordered $125 million penalty to $50 million. A federal judge rejected the request, citing the agency’s sudden reversal and lack of justification.
Other crypto cases were reportedly paused or quietly closed, especially those involving firms that later established political or financial ties to Trump or his family.
Political and Financial Links Highlighted
The investigation also detailed connections between certain crypto firms and Trump-linked business or political activity. The Winklevoss twins’ crypto company, which had faced a federal lawsuit, saw regulators move to freeze the case around the same time that broader enforcement pullbacks began.
The report also referenced Tron founder Justin Sun, whose company later became associated with digital assets connected to Trump-related ventures. Lawyers representing Trump-affiliated businesses have denied any connection between government decisions and private financial interests.
Different Treatment Compared to Previous Administration
The New York Times contrasted the current enforcement approach with that of the Biden administration. It reported that during Biden’s term, the SEC did not voluntarily dismiss any crypto cases inherited from Trump’s first presidency. By comparison, under Trump’s second term, roughly 14 out of 23 inherited crypto cases were either dismissed or paused.
Eight of those cases reportedly involved companies that later developed political or financial links to Trump or his family, suggesting a pattern that investigators described as selective.
White House Response
White House press secretary Karoline Leavitt dismissed allegations of conflicts of interest, stating that the administration’s actions were aimed at fulfilling the president’s promise to make the United States a global hub for cryptocurrency innovation and economic growth.
While the SEC has not publicly commented on the specific allegations outlined in the report, legal experts say the findings are likely to draw further scrutiny from lawmakers and regulators in the coming weeks.
