Challenging the SEC: Tron's Bold Move Against Alleged Overreach - What's at Stake?

Tron, a prominent blockchain entity, contests the lawsuit filed by the United States Securities and Exchange Commission (SEC), arguing that the regulator's jurisdiction does not extend globally. The Tron Foundation asserts that the SEC's attempt to enforce U.S. security laws on predominantly foreign activities exceeds its mandate.

Tron Foundation Challenges SEC's Global Jurisdiction, Questions Regulatory Claims Over TRX and BTT Sales

"The SEC is not a worldwide regulator," Tron Foundation stated in its dismissal motion filed in a New York federal court. The foundation emphasizes that the SEC's focus on foreign digital asset offerings to foreign buyers on global platforms falls outside its purview.

Tron's motion challenges the SEC's claim that the sale of TRX and BitTorrent (BTT) tokens constitutes unregistered securities offerings. Tron maintains that these tokens were exclusively sold overseas, with deliberate measures taken to avoid the U.S. market. Furthermore, Tron argues that the SEC's assertion regarding secondary token sales on a U.S.-based platform catering to global users lacks substantial evidence.

Tron Fights Back Against SEC Charges of Manipulative Trading and Celebrity Endorsements, Denies 'Wash Trading' and Calls for Specific Evidence

In response to the SEC's allegations of manipulative trading and celebrity endorsements, Tron refutes the accusations, stating that no concrete evidence supports the claims of "wash trading" or fraudulent activities. Additionally, Tron highlights the absence of specific victims in the SEC's allegations.

Tron further contends that the SEC's lawsuit lacks detailed factual allegations and relies on generalizations to support its claims. The foundation criticizes the SEC for failing to specify each defendant's role in the alleged claims, leaving room for speculation.

Moreover, Tron invokes the major questions doctrine, citing Supreme Court precedent, which suggests that Congress, not regulators, should determine the boundaries of authority. This argument aligns with similar dismissal bids made by other cryptocurrency firms facing SEC lawsuits.

The SEC has yet to respond to Tron's motion, and further legal proceedings are pending.