The Tron Foundation Seeks Dismissal of SEC Lawsuit, Citing Foreign Conduct
In a motion filed on March 28 in a New York federal court, the Tron Foundation, the entity behind the layer-1 blockchain Tron, has requested the dismissal of a lawsuit brought against it by the United States Securities and Exchange Commission (SEC).
The Foundation argues that the SEC’s efforts to apply U.S. security laws to what it deems “predominantly foreign conduct” exceed its jurisdiction.
According to the Tron Foundation, the SEC’s case revolves around the sale of Tron (TRX) and BitTorrent (BTT) tokens, which the SEC alleges are unregistered securities offerings. Tron contends that these tokens were sold exclusively overseas, with deliberate steps taken to avoid the U.S. market. Moreover, it asserts that the SEC has not provided evidence that these tokens were initially offered or sold to U.S. residents.
Tron further challenges the SEC’s claim that subsequent secondary token sales on a U.S.-based platform constitute unregistered U.S. securities. It argues that even if the SEC had jurisdiction, the tokens do not meet the criteria for investment contracts under the U.S. securities classification, as per the Howey test.
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Additionally, Tron disputes the SEC’s allegations of manipulative trading practices and secret payments to celebrities, asserting that the SEC has failed to provide specific evidence or identify any victims of wrongdoing.
The Foundation also criticizes the SEC for its lack of detailed factual allegations and reliance on generalizations to support its claims. It contends that the case should be dismissed under the major questions doctrine, a Supreme Court ruling stating that Congress should pass laws rather than delegating regulatory authority.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
