A bipartisan group of U.S. lawmakers is intensifying pressure on the Securities and Exchange Commission (SEC) to scrutinize Tron founder Justin Sun and the recent public listing of the Tron network. The controversy stems from the SEC’s unexpected decision in February to request a stay in its ongoing enforcement case against Sun, shortly before Tron completed its initial public offering (IPO) on the Nasdaq exchange.
Lawmakers have raised concerns over the timing and regulatory implications, questioning whether the SEC’s pause inadvertently facilitated the public debut without adequate oversight. In formal letters to the agency, legislators called for an immediate probe into potential conflicts of interest, regulatory gaps, and whether investors were sufficiently protected during the listing process.
The move highlights growing scrutiny of crypto-related public offerings and the SEC’s enforcement consistency. Critics argue that the stay may have created an uneven playing field, allowing Tron to access public markets amid unresolved legal challenges. The SEC has yet to publicly respond to the lawmakers’ demands. Market analysts and compliance experts are closely monitoring the situation, which could influence future crypto regulatory actions and public listings in the U.S.
