Tron founder Justin Sun plans to discuss reconciliation with the SEC! Maybe related to Trump's cryptocurrency project WLFI

The Securities and Exchange Commission (SEC) and Tron founder Justin Sun reached an agreement on February 26 to apply to the U.S. federal court for a suspension of the lawsuit, seeking a 60-day suspension. If approved by the court, the parties will submit a joint report explaining the progress and initiate settlement negotiations.

Trump administration changes its position, SEC slows down the pace of cryptocurrency litigation

Since President Trump took office, the SEC has successively suspended or revoked lawsuits against well-known exchanges such as Binance, Coinbase, Gemini, NFT platforms such as OpenSea, online brokers such as Robinhood Crypto, and decentralized exchanges such as Uniswap.

Trump promised to relax cryptocurrency regulations during his campaign and positioned the United States as a "global cryptocurrency center." Sources revealed that the SEC is currently prioritizing expiring crypto cases and may also suspend lawsuits against Kraken and Ripple in the future, with court deadlines for the two cases being at the end of March and mid-April, respectively.

SEC previously accused Justin Sun of illegal transactions and questioned his jurisdiction

In March 2023, the SEC sued Justin Sun and his three companies, including the Tron Foundation, the BitTorrent Foundation and Rainberry Inc. The SEC accused Justin Sun of illegally selling unregistered securities through issuing TRX and BTT tokens and manipulating prices through false transactions in the secondary market.

Yuchen Sun then filed a motion to revoke the lawsuit, saying that the SEC lacks jurisdiction because the relevant transactions mainly occurred outside the United States. But the SEC refuted that Justin Sun had "frequent visits to the United States", so the U.S. court has jurisdiction.

Yuchen Sun's investment in Trump's encryption project WLFI may affect the litigation results

It is worth noting that Justin Sun is the largest investor in Trump's crypto project World Liberty Financial (WLFI) and serves as the project's chief consultant, with a $75 million investment, including $30 million in November last year and $45 million in the previous month.

In view of the significant adjustment of cryptocurrency regulatory policies after the Trump administration took office, the SEC has successively suspended or revoked lawsuits against many companies. Justin Sun's investment is closely related to the interests of Trump's camp, which may further prompt the SEC to eventually withdraw the lawsuit.

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