Lawmakers questioned SEC Chairman Gary Gensler about the agency’s stalled enforcement case against Justin Sun and the Tron Foundation. The hearing highlighted allegations of TRX market manipulation and Sun’s reported political connections. Simultaneously, regulators are advancing new rules under the Clarity Act to provide clearer oversight for the digital asset industry.
U.S. lawmakers pressed Securities and Exchange Commission (SEC) Chairman Gary Gensler on the agency’s halted case against Justin Sun. The session, led by Representative Maxine Waters, focused on the SEC’s decision to drop several cryptocurrency-related enforcement actions.
Representative Waters stated the SEC had investigated Sun and the Tron Foundation for allegations including efforts to manipulate the price of TRX. She noted the case was placed on hold for a potential resolution that has not yet been reached. During this period, Waters highlighted Sun’s growing ties to associates of former President Donald Trump.
Waters referenced Sun’s alleged connection to a company called World Liberty Financial Inc., which she stated is related to the Trump family. She also cited public comments from a woman who claimed to have evidence of TRX manipulation. Sun and Tron did not comment on the hearing proceedings.
Democrats at the hearing characterized the dropping of enforcement actions against firms like Binance, Ripple, Coinbase, Kraken, and Robinhood as a significant policy shift. Republicans urged Gensler to provide regulatory clarity for digital asset companies operating in the U.S.
Gensler responded that the SEC would act in cases involving securities and confirmed the agency is working with the Commodity Futures Trading Commission (CFTC) on rules pursuant to the Clarity Act. The CFTC recently updated guidance allowing national trust banks to issue payment stablecoins and expanded eligible tokenized collateral.
