U.S. lawmakers question SEC about Tron IPO, urging investigation of Sun Yuchen

According to ChainCatcher, two U.S. members of Congress wrote to the Securities and Exchange Commission (SEC) to respond to questions that affect how crypto companies are listed on U.S. exchanges, according to Cointelegraph. Senator Jeff Merkley and Rep. Sean Casten in the letter questioned the SEC's time to abandon the enforcement of the bill against Tron founder Justin Sun. Justin Sun was charged in 2023 for allegedly issuing unregistered securities, but the SEC applied for a moratorium on the case the month after former chairman Gary Gensler left. Congressmen believe that Justin Sun's "large investment" in cryptocurrency projects controlled by the Trump family (such as World Liberty Financial and Meme currency TRUMP) may affect the direction of the case. In addition, they questioned Tron’s listing on Nasdaq in July through a reverse acquisition, saying it posed financial and national security risks, requiring the SEC to ensure Tron meets strict standards for listing on the US Stock Exchange, and questioning whether the SEC can “protect the U.S. public” through a settlement agreement. The letter may trigger a wider scrutiny of similar listings by other foreign crypto companies.