U.S. lawmakers question SEC about Tron's listing on Nasdaq

On September 19, two U.S. congressmen wrote to the Securities and Exchange Commission (SEC) to respond to questions that affect the way crypto companies are listed on U.S. exchanges. Senator Jeff Merkley and Rep. Sean Casten in the letter questioned the SEC's time to abandon the law enforcement action against Tron founder Justin Sun. Justin Sun was charged in 2023 for suspected issuance of unregistered securities, but the SEC applied for suspension of the case just the month after former chairman Gary Gensler left. Members of lawmakers believe that Justin Sun's "large investment" in cryptocurrency projects controlled by the Trump family (such as WorldLiberty Financial and Meme currency TRUMP) may affect the direction of the case. In addition, they also questioned Tron's listing on Nasdaq in July through a reverse acquisition, saying it brought financial and national security risks, requiring the SEC to ensure that Tron meets strict standards for listing on the US Stock Exchange, and questioned whether the SEC can "protect the American public" through a settlement agreement. The letter may trigger a wider scrutiny of similar listings by other foreign crypto companies.