- The creator of Tron seems poised to reach an agreement with the SEC.
- Justin Sun allocated $75 million into World Liberty Financial.
- This occurrence signifies the latest concession by the SEC in matters related to cryptocurrency.
Justin Sun, the wealthy founder of Tron and advisor to President Donald Trump’s cryptocurrency initiative World Liberty Financial, has recently navigated a major legal hurdle.
As per a court filing, on Wednesday, the U.S. Securities and Exchange Commission jointly asked a federal court to pause enforcement actions against the crypto titan so they could “consider possible resolutions.”
Legal Compromises
This request mirrors the enforcement lawsuit the SEC initiated earlier this month against Binance and its co-founder and former CEO Changpeng Zhao.
It also underscores a series of legal compromises made by the SEC as it reassesses its strategy regarding the digital asset sector.
On Friday, Coinbase CEO Brian Armstrong mentioned on the X platform that the SEC had withdrawn its lawsuit, which accused the exchange of breaching federal laws by offering unregistered securities and functioning as an unlicensed exchange.
In March 2023, the SEC accused Sun and his three enterprises—Tron Foundation, BitTorrent Foundation, and Rainberry, Inc.—of fraud, market manipulation, and issuing unregistered securities.
Trump’s Endorsement
Sun has refuted these claims and sought to dismiss the case last March. He has not promptly replied to inquiries for comments.
During his presidential campaign, Trump vowed to terminate the “enforcement-heavy” strategy advocated by former SEC Chair Gary Gensler.
Trumps backing has been embraced within the cryptocurrency arena, with notable personalities such as Coinbase, venture capitalist Marc Andreessen, and the Winklevoss twins significantly contributing to his campaign. As reported by OpenSecrets, three major industry super PACs—Fairshake, Protect Progress, and Defend American Jobs—allocated $133 million to support candidates favorable to crypto, including Trump, during the electoral process. Sun Yuchen revealed on X that he invested $75 million in the Trump family’s decentralized finance venture, World Liberty Financial. Data from Arkham Intelligence indicates that World Liberty Financial also possesses over $9 million in native TRX tokens. Under the guidance of interim chair Mark Uyeda, the SEC is rapidly fulfilling Trump’s commitments to the sector by dismissing cases and lifting restrictions established by the Biden administration. More cryptocurrency cases appear poised to be put on hold. On Wednesday, Cameron Winklevoss, co-founder of the Gemini exchange, declared that the agency has wrapped up its investigation into the ninth largest exchange in the sector and will refrain from taking any action. The SEC had charged Gemini in January 2023 with offering unregistered securities through its yield program, which Gemini refuted.
A Call to Attention
Moreover, the SEC has paused or suspended actions against Uniswap Labs, Robinhood’s cryptocurrency activities, and the NFT marketplace OpenSea. For those skeptical of crypto, the sector’s successes in front of regulators signify a stark new reality. “There was a period when the SEC was filing or winning a crypto case nearly every day,” stated John Reed Stark, former head of the Internet Enforcement Office, on LinkedIn. “Currently, the SEC is closing or dismissing a crypto case nearly every day.”
Liam Kelly is a journalist for DL News located in Berlin. If you have any insights, please reach out to him via email at [email protected].
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