Two members of the US Congress are seeking answers from the Securities and Exchange Commission (SEC) about how the agency has handled matters related to Tron’s
$0.3406
Nasdaq listing and a legal case involving the company’s founder.
Senator Jeff Merkley and Representative Sean Casten sent a letter on September 17 to SEC Chair Paul Atkins and Cicely LaMothe.
In the letter, they requested that the agency explain its decision to pause the lawsuit against Tron’s founder, Justin Sun, and to review the company’s recent path toward becoming a publicly traded firm.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
10 Biggest Crypto Scams & How to Avoid Them (ANIMATED)
Merkley and Casten pointed out that Sun has made financial contributions to projects connected to President Donald Trump, including ventures like World Liberty Financial and a meme coin named “Official Trump”.
They suggested that these ties may have influenced the enforcement process and are urging the SEC to clarify its reasons for halting the case.
The lawmakers also raised concerns about Tron going public through a reverse merger, a process that allows companies to join stock exchanges without a traditional initial public offering (IPO).
Merkley and Casten worried that Tron’s public listing could pose risks related to both finance and national security, particularly due to reported connections to Chinese entities. They are asking the SEC to ensure that Tron complies with all rules and meets the standards expected of companies entering the US markets.
The letter closes by asking the SEC whether it has the necessary tools to protect investors if the case against Sun is settled rather than taken to court.
In a recent conversation with the Financial Times, Atkins discussed how the SEC plans to handle crypto cases. What did he say? Read the full story.
