- A Federal judge has denied the SEC’s bid to expedite Tron’s securities case.
- Tron’s defense challenged the SEC’s understanding of Howey Test elements.
As a seasoned crypto investor who has navigated through the ups and downs of this dynamic industry, I find myself intrigued by the latest turn of events between Tron [TRX] and the SEC. The recent ruling in favor of Tron is certainly a breath of fresh air, yet it’s important to remember that this battle is far from over.
Amidst the ongoing dispute between the Tron Foundation and the U.S. Securities and Exchange Commission (SEC), an interesting turn of events has arisen.
According to the latest updates, it appears that both the Tron Foundation and its creator, Justin Sun, have successfully emerged victorious in a recent legal battle.
Tron’s win over the SEC?
In a significant development, a Federal court judge in New York has turned down the Securities and Exchange Commission’s (SEC) push for a quick resolution in the ongoing securities fraud case involving Tron [TRX]. This decision represents a pivotal point in this intense legal confrontation.
Regardless of this win, there’s a lot of chatter suggesting that the ongoing legal struggle isn’t close to being resolved. User Collin Brown on the Twitter platform (previously known as X), echoed this doubt.
“This legal victory strengthens TRON’s defense but the battle is far from over. The decision could have major implications for how U.S. securities laws apply to global crypto transactions.”
SEC’s move against Tron
In the given situation, the SEC requested a preliminary hearing to present further points in their legal action against Tron and Justin Sun.
In simpler terms, they asserted that the defense presented fresh arguments concerning the “shared endeavor” aspect of the Howey Test, following their motion to discard the case. They believe this action went against established legal procedures.
To clarify for anyone new to this topic, the Howey Test is used to decide if a financial transaction falls under the category of an investment contract according to American securities legislation.
In defense, Justin Sun and the Counsels for Tron argued that the SEC misunderstood their stance on the Howey Test.
Instead of building their defense around the “common enterprise” principle, they base it on the anticipation of earning profits from others’ work.
Consequently, the judge dismissed the SEC’s petition, stating that the defense did not, in fact, dispute the “shared venture” aspect.
Echoes of the past
This incident echoes a similar situation from the 20th of June.
Personally speaking, I found it significant when Judge Phyllis Hamilton of the U.S. District Court for the Northern District of California discarded four charges levied by the SEC against Ripple (XRP), claiming that they had not properly registered XRP as a security.
In simpler terms, Judge Hamilton decided that XRP might be categorized as a security when it’s sold to individual buyers. This ruling permits the ongoing legal action against Ripple, led by Brad Garlinghouse, its CEO, to continue based on his statements.
In light of these instances, they serve to highlight the possibility of SEC exceeding its boundaries and spark questions about its methodology in handling procedures.
Therefore, with the ongoing legal dispute between the Tron Foundation and the Securities and Exchange Commission, it is uncertain how U.S. securities regulations will influence the wider cryptocurrency market.
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2024-08-21 04:08