US lawmakers challenge SEC on Tron IPO, press for probe into Justin Sun

The financial regulator asked a judge to stay its enforcement case against the Tron founder in February, after which time the company went public on Nasdaq.

Two members of Congress have called on the Securities and Exchange Commission (SEC) to answer questions that could impact how crypto companies go public on US exchanges. 

In a Wednesday letter to SEC Chair Paul Atkins and acting director of the commission’s division of corporation finance Cicely LaMothe, Senator Jeff Merkley and Representative Sean Casten questioned the agency’s timing on dropping an enforcement case against Tron founder and CEO Justin Sun.

The Tron founder had been facing a lawsuit filed by the SEC in 2023 over allegations of offering unregistered securities, but the agency asked for a stay in the case in February, a month after the departure of former Chair Gary Gensler.

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