Lawmakers Press SEC on Tron Listing, Sun Lawsuit Hold

Lawmakers Press SEC Over Tron Listing and Justin Sun Lawsuit Pause

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 19, 2025

Key Takeaways

Two lawmakers have asked the SEC to explain why it paused its lawsuit against Tron’s founder, Justin Sun, and to review Tron’s Nasdaq listing;
Concerns were raised about Sun’s financial ties to Trump-linked crypto projects, which lawmakers say could have influenced the SEC’s enforcement;
Tron’s reverse merger route to go public, and reported links to China, have prompted calls for stronger regulatory checks and investor protections.

Don't miss out - BYDFi new user bonus is now LIVE! Join BYDFi & unlock up to $2,000 in rewards. Claim Bonus! 🎁

BITDEGREE IN YOUR SOCIAL FEED

Two members of the US Congress are seeking answers from the Securities and Exchange Commission (SEC) about how the agency has handled matters related to Tron’s TRX $0.3474 Nasdaq listing and a legal case involving the company’s founder.

Senator Jeff Merkley and Representative Sean Casten sent a letter on September 17 to SEC Chair Paul Atkins and Cicely LaMothe.

In the letter, they requested that the agency explain its decision to pause the lawsuit against Tron’s founder, Justin Sun, and to review the company's recent path toward becoming a publicly traded firm.

Crypto Research Fundamentals: How to DYOR (Animated Explainer)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Merkley and Casten pointed out that Sun has made financial contributions to projects connected to President Donald Trump, including ventures like World Liberty Financial and a meme coin named "Official Trump".

They suggested that these ties may have influenced the enforcement process and are urging the SEC to clarify its reasons for halting the case.

The lawmakers also raised concerns about Tron going public through a reverse merger, a process that allows companies to join stock exchanges without a traditional initial public offering (IPO).

Merkley and Casten worried that Tron’s public listing could pose risks related to both finance and national security, particularly due to reported connections to Chinese entities. They are asking the SEC to ensure that Tron complies with all rules and meets the standards expected of companies entering the US markets.

The letter closes by asking the SEC whether it has the necessary tools to protect investors if the case against Sun is settled rather than taken to court.

In a recent conversation with the Financial Times, Atkins discussed how the SEC plans to handle crypto cases. What did he say? Read the full story.