House Democrats urge SEC to resume lawsuit against Tron founder

Democratic members of the U.S. House Financial Services Committee have sent a letter to Securities and Exchange Commission (SEC) Chair Paul Atkins, urging the agency to resume its lawsuit against Tron (TRX) founder Justin Sun. The lawmakers accused the SEC of lax oversight and selective application of securities laws to cryptocurrency firms, particularly urging a restart of the case against Sun, who they noted is presumed to have ties to China. According to Decrypt, the lawmakers suggested that the SEC's shift from a hardline stance to abandoning lawsuits against crypto firms appears to be based on political judgment rather than legal grounds. They emphasized that if the SEC is an institution for the American people, it must resume the case against Sun. The SEC initially sued Justin Sun and Tron in March 2023 on charges of fraud and selling unregistered securities. Following a change in leadership, the commission requested a temporary halt to the lawsuit in February 2025.