A political clash is heating up over the U.S. SEC’s new approach to crypto regulation. Congresswoman Maxine Waters has criticized SEC Chair Paul Atkins, accusing the agency of easing oversight and favoring large financial institutions. Her comments come as the SEC, now operating with an all-Republican commission, rolls back several proposals from the previous administration and moves away from aggressive enforcement actions against crypto firms.

At the center of the debate is “Project Crypto,” a joint effort between the SEC and the CFTC to clearly define different types of digital assets. The goal is to separate digital commodities, utility tokens, and collectibles, helping crypto companies understand which rules apply to them.

The…