The TRON Foundation, headed by founder Justin Sun, along with other defendants, have submitted a motion to dispute the jurisdiction of the U.S. Securities and Exchange Commission (SEC) in a lawsuit they are facing.

In the motion, the defendants argue that the SEC's efforts to apply U.S. securities laws to actions mostly conducted outside the United States are not legally supported. They stress that the SEC does not have the authority to regulate globally, particularly for activities carried out beyond U.S. borders.

The defendants, which include TRON Foundation, Justin Sun, BitTorrent Foundation, and Rainberry, claim that the SEC's allegations are unfounded and should be thrown out.

Despite Rainberry being registered in California, the defendants contend that the SEC's claims lack proper notice and highlight concerns about regulatory overreach. Rainberry, even though not disputing the court's jurisdiction, seeks dismissal based on reasons unrelated to jurisdiction, pointing out the lack of clarity in the SEC's accusations.

Invoking the Major Questions Doctrine

Furthermore, the defendants invoke the major questions doctrine to challenge the SEC's regulatory power in the digital asset sector. They argue that the SEC's broad regulatory actions do not have explicit approval from Congress, justifying the dismissal of the case.

This legal doctrine, which aims to limit excessive government intervention, reflects the defendants' worries about the SEC's regulatory overreach and its consequences for the global digital asset market.

The motion to dismiss the lawsuit underscores the defendants' opposition to the SEC's claims of distributing and airdropping unregistered securities, fraud, and market manipulation. The TRON Foundation and Justin Sun assert that the SEC's claims do not prove jurisdiction and bring up broader concerns about regulatory authority and fair notice in the changing landscape of digital assets and blockchain technology.

By challenging the SEC's jurisdiction and regulatory power, the TRON Foundation and Justin Sun hint at a larger discussion about the global application of securities laws and the evolving regulatory environment for digital assets.

As the results of the lawsuit could shape the regulatory scene for digital assets, interested parties are eager to see how this significant case progresses.