U.S. lawmakers question the SEC about the Tron IPO, urging an investigation into Justin Sun

ChainCatcher news, according to Cointelegraph, two U.S. lawmakers have written to the Securities and Exchange Commission (SEC) requesting a response to issues affecting how crypto companies are listed on U.S. exchanges.

Senator Jeff Merkley and Representative Sean Casten questioned the timing of the SEC's decision to drop the enforcement action against Tron founder Justin Sun. Sun was sued in 2023 for allegedly issuing unregistered securities, but the SEC filed to suspend the case the month after former Chairman Gary Gensler left office. The lawmakers believe that Sun's "substantial investments" in cryptocurrency projects controlled by the Trump family (such as World Liberty Financial and the meme coin TRUMP) may influence the case's outcome. Additionally, they questioned Tron’s reverse merger listing on Nasdaq in July, stating it poses financial and national security risks, and demanded that the SEC ensure Tron meets the strict standards for listing on U.S. exchanges, while also questioning whether the SEC can "protect the American public" through settlement agreements. This letter may trigger broader scrutiny of similar listing actions by other foreign crypto companies.