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Tron Foundation Dismissal Motion Against SEC Lawsuit
The entity behind the layer-1 blockchain Tron has requested the dismissal of a lawsuit filed by the United States Securities and Exchange Commission (SEC) against it, arguing that the regulator’s focus on “predominantly foreign conduct” goes beyond its jurisdiction.
Background of the Lawsuit
In a dismissal motion filed on March 28 in a New York federal court, the Tron Foundation stated that the SEC’s attempt to apply US security laws to predominantly foreign activities exceeds the regulator’s authority as it is not a global regulatory body.
Arguments by Tron Foundation
- Tron Foundation argued that the tokens were sold exclusively overseas, with measures taken to avoid the U.S. market.
- Tron further argued that even if the SEC had jurisdiction, the tokens would not meet the criteria of investment contracts under the U.S. securities classification.
Response to SEC Allegations
Tron refuted the SEC’s claims of manipulative wash trading and undisclosed payments to celebrities, stating that there were no specific facts demonstrating these allegations.
Other Arguments by Tron
- Tron contended that the SEC’s lawsuit lacked specific factual allegations and relied on generalizations to support its claims.
- Tron invoked the major questions doctrine, arguing that Congress should pass laws instead of delegating authority to regulators.
SEC’s Actions Against Crypto Companies
Over the past year, the SEC has filed numerous lawsuits against crypto firms, with SEC Chair Gary Gensler consistently asserting that most cryptocurrencies should be classified as securities.
Industry Response
Many industry players and advocacy groups have called on the SEC to establish clear regulatory guidelines to foster innovation within the United States.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
