The Tron Foundation has filed a motion to dismiss the lawsuit levied by the U.S. Securities and Exchange Commission (SEC). The reason cited for the dismissal is the SEC’s overreach of jurisdiction and the invalidity of its allegations regarding the token as a security.

The lawyers of the Tron Foundation, which oversees the Tron blockchain, presented their filing in court. They believe that the accusations targeted at TRON founder Justin Sun, the organization itself, and the creators of the BitTorrent platform are baseless.

The filing suggests that the SEC has exceeded its jurisdiction, as it is “not a global regulator.” The organization maintains that the Commission has no authority over foreign companies and citizens, who are the defendants in the lawsuit.

According to the Tron Foundation, the TRX and BTT tokens, mentioned in the SEC’s filing, were never sold in the U.S. The agency’s allegations are aimed at “foreign offers of digital assets to overseas buyers on global platforms,” as stated in the motion. This evidences an overreach of power by the agency, the lawyers assert.

They claim that the defendants in the SEC lawsuit took all possible steps to avoid selling TRX and BTT tokens to American citizens. Regarding the sale of assets on the secondary market, the agency has not provided convincing evidence, the organization emphasized.

According to the lawyers, the SEC’s allegations of the defendants’ trading of unregistered securities are “at best, unconvincing.”

Even if the SEC had jurisdiction over TRON, BitTorrent, and Justin Sun, the agency’s accusations are groundless, the organization representatives note. In their opinion, the tokens cannot be classified as investment contracts according to U.S. law.

It should be noted that the Commission filed a lawsuit against Justin Sun, the Tron Foundation, and BitTorrent’s parent company, Rainberry Inc, in March 2023. The regulator accuses the defendants of selling unregistered securities, fraud, and market manipulation.