TRON challenges US SEC, citing global ICO and vague digital asset regulations

TRON, its creator Justin Sun, and Rainberry are now engaged in a legal dispute with the US Securities and Exchange Commission (SEC) about accusations of unlawfully selling unregistered securities during their 2017 TRX token Initial Coin Offering (ICO).

They contend that the claims made by the SEC are unsupported and assert that their digital assets were marketed internationally, therefore casting doubt on the SEC’s worldwide jurisdiction.

The action originated in March 2023, when the Securities and Exchange Commission (SEC) alleged that TRON and Sun engaged in the unlawful sale of unregistered securities via their 2017 TRX token Initial Coin Offering (ICO).

In 2023, the Securities and Exchange Commission (SEC) has taken 46 enforcement actions against cryptocurrencies, marking the largest number of actions taken in a single year.

The case against TRON shows the conflict between advancements in digital assets and the SEC’s conventional regulatory methods, emphasizing the need for more precise rules in the cryptocurrency sector.