Two U.S. representatives, Senator Jeff Merkley and Representative Sean Casten, are demanding answers from the Securities and Exchange Commission (SEC) regarding its handling of Tron founder Justin Sun. The focus is on the surprising decision to drop an ongoing investigation into alleged unregistered securities offerings.
The representatives point to Sun’s investments in crypto projects of U.S. President Donald Trump and his family, including the company World Liberty Financial and the memecoin TRUMP. They fear potential conflicts of interest and political influence.
Justin Sun is the largest holder of TRUMP tokens and was therefore invited to a dinner at the White House. Sun has also purchased $75 million worth of WFLI tokens issued by World Liberty Financial, a crypto platform owned by the three Trump sons. This makes him the company’s largest holder and advisor.
Tron went public on the Nasdaq through a reverse merger in July. Representatives consider this a security risk. Reason: Sun’s close ties to China could create strategic dependencies. In their letter to the SEC, the lawmakers demand that they ensure that Tron and Sun meet the “rigorous standards” required for a U.S. stock market listing.
Reform in sight: In parallel, Congress is working on a new market structure law for digital assets. The CLARITY Act is intended to clarify SEC and CFTC oversight by 2026 and could thus fundamentally change the framework for future crypto IPOs.