The SEC’s efforts to “incite controversy” in the ongoing case against Justin Sun and the Tron Foundation regarding securities have been rejected by the magistrate in New York.
New developments in the ongoing lawsuit between the Securities and Exchange Commission of the United States (SEC) and the Tron Foundation and Justin Sun.
In practice, the primary focus of the litigation is the sale of TRX and BTT tokens, which the SEC asserts are unregistered securities. Both the prosecution and the defense investigate the Howey test in order to demonstrate this.
The SEC filed a letter with the court on August 12 accusing the defense of attempting to introduce “a new argument,” specifically that the sales of TRX and BTT do not satisfy the “common enterprise” requirement of the Howey test.
In the past, it appears that the defenders of Sun had initially contested only two components of the Howey test: the expectation of profits and the investment of money. However, they did not contest the element of the common enterprise.
In reality, the defendants would have submitted a motion to dismiss the case in April of last year, contending that the SEC has not established jurisdiction over foreign defendants.
The SEC is now requesting that the judge not examine the new argument in Sun’s motion to dismiss or to require them to submit a “sur-reply” in response.
Concurrently, Tron’s attorneys responded to the SEC’s letter. Composing their own letter to Judge Edgardo Ramos of the United States District Court for the Southern District of New York (SDNY).
This time, Justin Sun and the Tron Foundation are accusing the SEC of “attempting to create a controversy.” Urging the court to decline the SEC’s request for a pre-trial conference.
Judge Ramos assumed responsibility for the circumstance and rendered his decision on August 19, supporting Tron’s supporters.
The Tron Foundation and Justin Sun would not have presented any new argument to the New York magistrate in practice.
In any event, the lawsuit against Sun and its subsidiaries has not yet been dismissed and is currently in progress.
Sun’s motion to dismiss contends that the tokens were sold “exclusively abroad,” with precautions implemented to circumvent the U.S. market. The SEC is not a global regulatory authority for Sun.
The price of Tron (TRX) is $0.14 at the time of writing, following a 6% increase in the past 24 hours. When examining the weekly price chart, TRX has increased by +14% over the past seven days.
A trend that is slightly enhancing the overall verdant hue of the crypto market, including the prices of Bitcoin and Ethereum.
Tron maintains its position as the tenth most valuable cryptocurrency in terms of market capitalization, with a total of $12.5 billion. The trading volume of TRX has also increased by +178% in the past 24 hours.
Also Read: Dubai Court Approves Cryptocurrency as a Salary Payment Method
