US Lawmakers Flag “Pay-to-Play” Fears as SEC Drops 12 Crypto Cases, Pauses Justin Sun Probe
Key Takeaways:Congress Challenges SEC’s Retreat From Crypto EnforcementHigh-Profile Cases Dropped Despite Court SupportPolitical Money and the “Pay-to-Play” QuestionJustin Sun Case Moves to Center StageThe Justin Sun Case Becomes a Central Test for the SEC
The paused enforcement action against Tron founder Justin Sun has become the clearest test of the SEC’s current posture. Unlike Binance, Coinbase, and Kraken, Sun’s case has not been dismissed; rather, it has been stayed since February 2025.
Read More: Justin Sun’s New Perp DEX ‘SunPerp’ Hits 3,000 Users Without Marketing
In 2023, the SEC filed suit against Sun for, allegedly, orchestrating the unregistered offering of crypto securities, conducting manipulative transactions in tokens through wash trades, and compensating celebrities to endorse tokens without adequate disclosure. Years of wrongdoing involving TRX and BTT tokens were alleged.
However, the specifics in the lawsuit, the SEC requested the court stay the action in order to negotiate a possible settlement. Lawmakers say that request came shortly after Sun invested more than $75 million in Trump-linked crypto ventures, including World Liberty Financial and Trump-branded tokens.
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