Tron’s Justin Sun Slams the US SEC After Lawsuit

Justin Sun, the founder of the decentralized exchange platform Tron, has come lashing out at the SEC after the securities regulator sued him for selling TRX and BTT tokens as unregistered securities. This development comes on the same day as the US SEC issued Wells Notice to crypto exchange Coinbase.

The SEC lawsuit on Justin Sun came on Wednesday, March 22, responding to which the Tron founder stated that this is yet another attempt by the agency “against well-known players in the blockchain and crypto space”.

Sun added that the complaint by the SEC “lacks merit” and that they would continue building Tron further as the most decentralized financial system. He also slammed the SEC for its delay in bringing clear regulatory rules impacting several businesses in the crypto industry. Sun wrote:

It is no secret that the SEC’s regulatory framework for digital assets is still in its infancy and is in need of further development. We are eager to collaborate with governments and regulatory bodies globally that are dedicated to establishing transparent guidelines for regulating and working with the cryptocurrency industry given the important role it can play.

In its lawsuit, the SEC has slammed Justin Sun for his involvement in “extensive wash trading” and trying to “fraudulently manipulate” TRX’s secondary market.

US SEC and Crypto Regulations

Ever since the FTX collapse, the US SEC has turned very active in going after crypto firms. Although the SEC claims that they are working towards better investor protection, however, the crypto players say that the SEC’s move will stifle innovation.

Furthermore, the crypto industry has been urging the SEC to work alongside and bring regulatory rules as early as possible. However, there’s little development on this front from the securities regulator. Crypto industry firms in the US fear that the SEC’s actions could push innovation out of the US. Founder of Custodia Bank, Caitlin Long said:

IT SHOULD BE CRYSTAL CLEAR BY NOW that the Biden Administration wants all #crypto (even the legit parts of it)–run out of the U.S. See also yesterday’s White House economic report, which dunked on all financial innovation while espousing the “stability” of traditional banks. 

It’s about time that the US SEC sits along with crypto industry players to bring clear guidelines.