The Tron Foundation, responsible for the blockchain Tron, has filed a motion in a New York federal court to dismiss a lawsuit by the SEC. The SEC is accused of trying to enforce U.S. securities laws on activities primarily outside the U.S. Tron argues that the SEC does not have jurisdiction over foreign digital asset offerings to foreign purchasers on global platforms. They maintain that token sales occurred entirely outside the United States and were designed to exclude the U.S. market. Tron also disputes the SEC's claims regarding secondary token sales on U.S. platforms and challenges the criteria for investment contracts under the Howey test.

The SEC has accused Justin Sun, Tron's founder, of deceptive trade practices like "manipulative wash trading" and undisclosed payments to celebrities. Tron contests these accusations, claiming the SEC has not provided specific facts to support them, especially ones implicating U.S. victims. Tron criticizes the SEC for broad allegations without detailed factual claims or a specific basis for fraud. The foundation argues that regulatory authority must be explicitly granted by Congress, invoking the major questions doctrine.

The SEC is expected to respond to Tron's motion within two weeks, though they had not commented on it at the report's time.

To submit a crypto press release (PR), send an email to [email protected].