US Lawmakers Demand SEC Action in Justin Sun Case

House Representatives Voice Concerns

Three Democratic members of the U.S. House of Representatives have called on SEC Chair Paul Atkins to provide information regarding the closure of investigations or the dismissal of enforcement actions in "at least a dozen cryptocurrency-related cases," including that of Tron founder Justin Sun.

In a letter addressed to Atkins, Representatives Maxine Waters, Brad Sherman, and Sean Casten expressed concern that leaving the SEC's case against Sun unresolved could "undermine investor confidence" in the regulatory body. The lawmakers highlighted that the agency has "openly and boldly dismissed the majority of enforcement actions in the cryptocurrency sector," including those against cryptocurrency exchanges Binance, Coinbase, and Kraken.

The letter specifically urged the SEC to reconsider its case against Sun, citing his connections to China and suspicions that dropping the case might be part of a "pay-to-play system for gaining favors." Waters, Sherman, and Casten noted that the SEC's decision to request a suspension of its action against Sun "threatens to undermine investor confidence in the SEC."

The lawmakers also demanded that the SEC maintain and produce all documents and communications related to the decision in the Sun case. Cointelegraph reached out to the SEC and a spokesperson for Sun for comments but did not receive a response by the time of publication.