The TRON Foundation and Justin Sun say the SEC does not have jurisdiction over foreign defendants

TRON Foundation and Justin Sun lead other co-defendants to challenge the SEC's lawsuit. The defendants seek dismissal because the SEC has no jurisdiction over foreign conduct. The defendants filed a motion citing the major questions doctrine.

The TRON Foundation, led by founder Justin Sun, has filed a motion to dismiss the lawsuit filed by the US Securities and Exchange Commission (SEC).

On the motion, the defendants argued that the SEC's attempt to extend U.S. securities laws to mostly foreign conduct lacked legal justification. They emphasized that the SEC's regulatory reach does not extend internationally, particularly with respect to activities outside the United States.

The defendants, including TRON Foundation, TRON founder Justin Sun, Bittor Foundation and Rainberry, assert that the SEC's claims lack merit and should be dismissed.

Despite Rainberry's California registration, the defendants argue that the SEC's pursuit of the claims lacks fair notice and raises concerns about regulatory oversight. While Rainberry does not challenge the court's jurisdiction, it seeks dismissal on non-jurisdictional grounds, indicating a lack of diversity in the SEC's lawsuits.

Calling the doctrine of the main questions

Additionally, the defendants invoke the substantive claims doctrine to challenge the SEC's regulatory authority over digital asset markets. They argue that the SEC's broad regulatory actions warrant dismissal of the case because they lack express congressional authorization.

This legal precedent, aimed at curbing government overreach, highlights the defendants' concerns about the SEC's regulatory oversight and implications for the global digital asset market.

The motion to dismiss the lawsuit alleges the defendants' alleged involvement in the sale and dumping of unregistered securities, fraud and market manipulation. The TRON Foundation and Justin Sun say the SEC's claims fail to demonstrate jurisdiction and raise broader questions about regulatory authority and the evolving landscape of digital assets and blockchain technology.

In challenging the SEC's jurisdictional and regulatory authority, the TRON Foundation and Justin Sun represent a broader debate around the accessibility of securities laws globally and the regulatory framework for digital assets.

While the outcome of the lawsuit is set to impact the regulatory landscape of digital assets, stakeholders await further developments in this high-profile case.