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U.S. lawmakers challenge the SEC to Tron IPO, press for Justin Sun investigation


Two Congress members called the Securities and Exchange Commission (SEC) to answer questions that could affect how crypto companies were public in US exchanges.

In a Wednesday letter to Sec Chair Paul Atkins and acting director of the Commission of Corporation Finance Cicely Lamothe, Senator Jeff Merkley and Representative Sean Casten Question The agency’s timing in the collapse of an implementation case against Tron and CEO founder Justin Sun.

The founder of Tron faces a lawsuit Filed by Sec In 2023 due to allegations that were offered unregistered security, but the agency requested to remain in the case in February, one month after the removal of former Chair Gary Gensler.

Sec, Donald Trump, Ipo, Tron, Justin Sun
Wednesday letter to Sec. Source: Sean Casten is representative

Merkley and Casten recommend that the Sun “big investment” in the crypto ventures controlled by US President Donald Trump and his family, including World Liberty Financial and his Memecoin, official Trump (Trump), the case can be influenced to stop.

Two lawmakers also challenged Tron Going to the public in Nasdaq In July by a reverse merger, claiming that the transition “increases financial and national security risks” due to the unlikely links to the Chinese government.

“Due to the litany of issues associated with Mr. Sun’s investment in the President’s cryptocurrency adventures and his plans to bring the Tron Public through the reverse merger process, we asked the SEC to ensure that Tron Inc. meets the strict criteria required to be listed in US stock exchanges,” the letter reads.

Related: Justin Sun urges Trump associated with WLFI to unlock ‘irrational’ frozen tokens

Lawmakers have questioned Tron’s application process for going public through a reverse merger and whether the SEC can “protect the American public” through any regulating the Sun.

Although it has specifically named the Tron and its CEO, the letter may draw a broader investigation of other foreign crypto companies trying to go public to the US through similar structures.

Cointelegraph handed a Tron spokesperson to comment, but did not receive a response at the time of publication.

https://www.youtube.com/watch?v=sumyysrjvzm

Legislative questions can be moot under pending market structural law

The SEC under the Atkins has made significant policy changes since Trump’s office, along with refusal of investigations or execution actions in many crypto companies. However, the underlying framework in which the Commission controls and implements digital assets may change soon, provided by Republicans’ plans in Congress.

In July, the Republican -controlled Republican passed the Clarity Act, a bill to establish a crypto market structure. The leadership of the Senate Banking Committee said they plan to build the law to create their own version of a market structure bill, expected to be signed in with the law By 2026.

Although the final text of any potential bill is not yet clear, many of the suggested drafts have suggested that regulations change to comply with the digital asset industry, and promote clear duties for US financial regulators, the SEC and Commodity Futures Trading Commission (CFTC).

The final framework, if passed, can eliminate obstacles or affect restrictions on how companies like Tron go public with US exchanges.

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