New York City, Tuesday, August 27, 2024 – A federal judge in New York has dealt a setback to the U.S. Securities and Exchange Commission (SEC) on August 19 in its ongoing case against Tron founder Justin Sun.
Judge Edgardo Ramos denied the SEC’s motion to weaken Sun’s defense, which argues that the agency lacks jurisdiction over foreign digital asset transactions.
The SEC has accused Sun and the Tron Foundation of conducting unregistered sales of securities, manipulative trading, and illegally promoting Tron (TRX) and BitTorrent (BTT) tokens. Sun’s defense team contends that the SEC is overreaching by applying U.S. securities laws to predominantly foreign conduct.
The judge’s ruling is a significant victory for Sun, as it could potentially limit the SEC’s ability to pursue cases against cryptocurrency companies operating outside the United States. The case is expected to be closely watched by the crypto industry, as it could have far-reaching implications for the regulation of digital assets.
While the SEC has faced criticism for its “regulation-by-enforcement” approach to cryptocurrencies, the agency has remained steadfast in its pursuit of cases against alleged violators. The SEC’s recent efforts to regulate the crypto industry have also drawn opposition from a coalition of seven U.S. states.
As the legal battle between Sun and the SEC continues, the outcome could have a profound impact on the future of the cryptocurrency market.
Seven US states have come together to challenge the Securities and Exchange Commission’s (SEC) regulation of cryptocurrency.
