By cryptoadmin Amanda Fischer, former chief of staff to former SEC Chairman Gary Gensler, has sharply criticized the institution’s settlement with Tron (TRX) and cryptocurrency entrepreneur Justin Sun.
Fischer argued that while the SEC had strong evidence against Sun and the crypto companies, the settlement was far softer than expected. According to Fischer, given the scope and seriousness of the fraud allegations against Sun, the settlement was essentially a “face-saving move to save the company.”
Fischer stated that the judge presiding over the case should not have accepted this settlement, and called on the US Congress to launch an investigation into the SEC’s decision-making process. According to Fischer, this step taken by the agency raises serious questions about the regulator’s practices in the crypto sector.
A significant portion of the criticism focuses on regulatory consistency. Fischer stated that the agreement concluded that the TRON token is a security offering, but that this assessment contradicts the SEC’s previous withdrawal of lawsuits against some crypto projects. According to Fischer, if TRON is considered a security, it needs to be clearly explained why other token projects with similar structures are evaluated differently.
Fischer also argued that the SEC could not consistently explain this distinction within the framework of the Howey Test. According to him, the regulator’s approach gives the impression of being based more on political and public pressure on specific actors than on a clear legal framework.
*This is not investment advice.