Claim global platform immunity and offer potential relief for TRX?

• Tron is fighting the SEC in court, saying the agency lacks authority over its global operations.

• The SEC accused Tron of selling unregistered securities and engaging in wash trading, but Tron denied these claims.

The Tron Foundation, the entity behind the layer 1 blockchain Tron, You have submitted your application This is to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in New York federal court. Tron argues that the SEC’s attempt to apply U.S. securities laws to activities conducted primarily outside the U.S. exceeds its regulatory authority.

Moreover, Tron claims: Secondary Token Sale On US-based platforms serving users around the world, tokens are not automatically subject to US securities laws.

In its complaint, Tron highlighted the SEC’s lack of global regulatory authority. In filing the layoffs on March 28, the Tron Foundation sought to support its request by emphasizing the global reach of its operations and customers. The complaint filed by the SEC last year named the BitTorrent Foundation and the Tron Foundation, both well-known as file-sharing networks, along with Chairman Justin Sun.

Challenges to SEC claims

According to Tron, the token is It does not meet the investment contract requirements. The Howey test is a method used to determine whether a particular transaction constitutes a security. Tron disputed the SEC’s classification of its tokens as an unregistered securities offering. Moreover, according to Tron, the SEC failed to provide concrete evidence to support its accusations of rigged trading techniques and celebrity endorsements.

Tron’s move to dismiss the SEC action also highlights procedural issues, citing insufficient factual charges and an overreliance on broad statements. The Foundation argues that the SEC’s allegations are inaccurate and that there is insufficient evidence that each defendant engaged in misconduct. Tron also uses key question theory, a Supreme Court ruling that limits regulatory authority without explicit legislative approval.

The SEC has not yet responded to Tron’s request to dismiss, but is expected to do so within the next two weeks. The outcome of this legal dispute will have significant implications for the regulation of digital asset offerings and the jurisdictional scope of U.S. securities laws.

Wash trading charges

Additionally, Justin Sun was indicted by the SEC on charges of wash trading, manipulating false market activity. According to the regulator, Sun used this strategy to secretly fund celebrities such as Akon and Soulja Boy to promote the Tron token. Additionally, Tron claims that the SEC failed to identify specific victims of these purported wash trades. The company maintained its not guilty stance, emphasizing the lack of proven facts presented by the SEC.

like previously highlighted According to Crypto News Flash, the Tron blockchain has seen a notable increase in illicit transactions, especially in activities such as drug sales and terrorist financing. Of particular concern is the fact that the number of blockchain addresses linked to terrorist financing on Tron that accepts the stablecoin Tether (USDT) has surged by a whopping 125% in 2023. According to TRM Labs, Tether remains the preferred stablecoin for criminal activities.

The TRON ecosystem, especially the Decentralized Autonomous Organization (DAO), a noticeable surge Since early February, the number of USDT transactions has now exceeded 2 million on average per day. IntotheBlock’s latest data highlights this surge, bringing trading volumes closer to the highest levels observed in January 2023.

USDT Trading @Trondao It has seen a notable rise since early February and is currently recording an average of over 2 million transactions per day. With this increase, the number of transactions is approaching its peak in January 2023. pic.twitter.com/BErBb17I04

— IntoTheBlock (@intotheblock) March 27, 2024

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