The US Securities and Exchange Commission (SEC) is currently evaluating its case against TRON founder Justin Sun in an attempt to find a beneficial solution for all parties involved.

The case, initially launched in March 2023, accused Sun of illegally distributing TRON tokens (TRX) and BitTorrent tokens (BTT) while exaggerating the trading volume of TRX.

On February 26, 2025, Sun’s attorneys and the SEC requested a 60-day pause in the proceedings in a letter sent to US District Judge Edgardo Ramos.

“The SEC has just agreed to pause the Tron Foundation lawsuit and are asking the judge for 60 days to resolve it. #AnotherOne” — Jeremy Hogan (@attorneyjeremy1) February 26, 2025

Moreover, the Gary Gensler-led SEC accused Sun of selling TRX and BTT tokens as unregistered investments via promotional activities. Allegedly, he conducted over 600,000 trades between April 2018 and February 2019 to simulate market activity, with his employees handling between 4.5 million and 7.4 million TRX trades daily.

The SEC has charged multiple celebrities, including Lindsay Lohan, Akon, and Austin Mahone, for endorsing TRX without properly disclosing payments they received.

SEC Concludes Investigation Into Robinhood’s Transactions

In a related development, the SEC has officially concluded its investigation into Robinhood, with the agency not proceeding with enforcement actions against the fintech firm.

On February 24, 2025, Robinhood announced that the SEC’s Enforcement Division had halted its probe into alleged security law violations post the May 2024 Wells Notice.

“The SEC closing its investigation into Robinhood Crypto is a win for justice and the rule of law…” — Vlad Tenev (@vladtenev) February 24, 2025

This closing of the investigation has been a major topic within the crypto community, especially regarding whether cryptocurrencies traded on Robinhood should be classified under stricter regulations as securities.

Notably, Dan Gallagher, Chief Legal Officer at Robinhood, stated, “Robinsonhood Crypto always respects federal securities laws…”.

The company’s success, including a 115% revenue spike to $1.01 billion in 2024 and a significant boost in crypto-related earnings, positions Robinhood for expansion in crypto offerings.

Shift in Regulatory Approach – Is This the Trump Effect?

The SEC’s decision to terminate investigations into Robinhood signals a broader trend toward relaxed crypto regulations following the reelection of President Trump. The acting chair of the SEC, Mark Uyeda, appears to be adopting a more lenient stance towards the crypto industry.

In a recent move, Uyeda relaunched the crypto task force, appointing Commissioner Hester Pierce for leadership. This shift seems to contrast with the previous administration’s strict enforcement policies and has been positively received by market participants.

Key Takeaways

• Justin Sun and the SEC requested a 60-day case pause on February 26, 2025.
• The SEC’s conclusions signal a pro-crypto stance under the current administration.
• The investigation’s outcome may lead to more lenient regulations for cryptocurrencies.