👉👉👉 #TRON argues #SEC ‘not a worldwide regulator’ and lawsuit goes ‘too far’
Tron, the entity behind the layer-1 blockchain, has moved to dismiss a lawsuit filed by the United States Securities and Exchange Commission (SEC), arguing that the SEC lacks jurisdiction over foreign digital asset offerings on global platforms. Tron filed a dismissal motion in a New York federal court on March 28, asserting that the SEC's lawsuit primarily targets conduct outside the United States.
Tron contends that the SEC's attempt to apply U.S. securities laws to predominantly foreign conduct exceeds its jurisdiction, emphasizing that the SEC is not a global regulator and lacks authority over offerings that occur mainly outside the United States.
The lawsuit, filed by the SEC last March, targeted Tron founder Justin Sun, the Tron Foundation, as well as the BitTorrent Foundation and its parent company Rainberry Inc., which Tron acquired in 2018. The SEC alleged that the sale of Tron (TRX) and #BitTorrent (BTT) tokens constituted unregistered securities offerings.
Tron argues that the tokens were sold exclusively overseas, with measures taken to avoid the U.S. market. It emphasizes that the SEC did not allege that the tokens were initially offered or sold to U.S. residents. Tron also disputes the SEC's assertion that later secondary token sales on a U.S.-based platform serving users worldwide constituted unregistered U.S. securities offerings.
Additionally, Tron contends that even if the SEC had jurisdiction, the tokens do not meet the criteria of investment contracts under the U.S. securities classification, as per the Howey test.
Tron contests the SEC's allegations, claiming they lack specific facts and fail to identify any victims of the alleged wrongdoing. Tron criticizes the lawsuit for its lack of detailed factual allegations and reliance on generalizations. Additionally, Tron invokes the major questions doctrine, seeking dismissal. The SEC has yet to respond to Tron's motion.
Source - cointelegraph.com