Tron Foundation and Justin Sun request dismissal of SEC lawsuit
Key Takeaways
- The Tron Foundation and Justin Sun are seeking to have the SEC lawsuit dismissed, arguing that U.S. courts do not have jurisdiction over them because they are foreign entities.
- They argue that it is unfair for the SEC to apply U.S. securities laws to activities conducted primarily abroad.
- The defense also cites a key question of principle that suggests the SEC’s broad approach lacks clear congressional approval, given ongoing uncertainty about digital asset regulation.
The Tron Foundation and Tron founder Justin Sun requested the U.S. District Court for the Southern District of New York to: dismiss a lawsuit This is a document submitted by the U.S. Securities and Exchange Commission (SEC).
According to documents filed on March 28, they claim: The SEC did not establish the court’s authority over foreign defendants.
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SEC March 2023 Defendant Sun and its related companies—Tron Foundation, BitTorrent Foundation, Rainberry—Unregistered offering and selling of cryptocurrency securities and using wash trading techniques. to manipulate secondary markets;
The defendants argued as follows: The SEC’s attempt to apply U.S. securities laws primarily to foreign activities while maintaining minimal ties to the U.S. is unjustified. their notes The court says:
The SEC is not a global regulator. Efforts to take advantage of very weak contacts with the United States and to expand U.S. securities laws to cover primarily foreign conduct go too far and should be rejected.
Rainberry, a California-registered corporation involved in the case, did not challenge the court’s authority. Instead, the court sought to dismiss the case for other reasons, including: arguement The argument is that proper notice was not given to the defendant.
Moreover, defendants also invoked the main question doctrine to argue that the SEC exceeded its authority. They said: Congress is still determining appropriate regulations. For digital asset and blockchain participants. therefore, This case should be dismissed as premature.
This legal battle is one of many lawsuits the SEC has launched against various cryptocurrency companies, once again sparking debate over the scope of U.S. securities laws.
The SEC also filed a lawsuit against Coinbase, accusing it of providing trading and staking services without the necessary regulatory permissions. In a recent update, a New York judge decided the lawsuit can proceed.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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