TRX News Today: Regulatory Storm Capsizes Crypto Treasury Bubble as Tron's Shares Sink 85%

Tron Inc.'s stock has plummeted 85% from its June 2025 peak, mirroring a broader slump among crypto-linked public companies as regulatory scrutiny intensifies and market confidence wanes. The decline reflects a cooling of the crypto treasury hype that fueled a wave of reverse-merger companies in 2024, with firms like MicroStrategy (MSTR) and Bitmine Immersion Technologies (BMNR) also experiencing sharp losses. Tron's shares fell from $12.80 to $2.98 in September alone, while its TRX token traded at $0.33 as of October 1, 2025, down nearly 1% in the past 24 hours.

The sell-off is part of a broader trend affecting digital asset treasury (DAT) companies, with over 15 firms tracked by Architect Partners averaging a 15% weekly decline in share prices. Experts attribute this to a combination of regulatory headwinds and market exhaustion. The U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are investigating 200 firms for suspicious stock trades preceding crypto treasury announcements, casting doubt on the legitimacy of these companies' valuations. Peter Chung of Presto Research noted that the "hype and frenzy" surrounding DATs has "deflated" as investors reassess the risks, particularly after the SEC's 2023 lawsuit against Tron founder Justin Sun for alleged unregistered securities offerings.

Justin Sun's recent actions further compounded the uncertainty. Following the September 1 token generation event for World Liberty Financial (WLFI), Sun claimed 600 million tokens and moved 9 million to HTX, prompting WLFI to freeze his remaining 591 million tokens. The move drew scrutiny amid ongoing SEC investigations into Sun's past activities, including allegations tied to TRON and BitTorrent. Sun's involvement in WLFI, a Trump-linked project, has also drawn political attention, with critics questioning whether his influence could exacerbate regulatory risks.

The broader crypto market is also grappling with volatility. TRX's price history shows a 15% drop in September, with trading volumes fluctuating between $112 million and $449 million daily. Despite its status as the 10th-largest cryptocurrency by market cap ($31.56 billion), TRX's performance lags behind Bitcoin and Ethereum, which have seen more stable institutional adoption. Analysts warn that TRX's reliance on speculative momentum, rather than fundamental utility, makes it vulnerable to further corrections.

Regulatory uncertainty remains a critical headwind. The SEC's ongoing case against Sun and the potential classification of TRX as a security have created a legal overhang, deterring institutional investors. A 2025 AMINA Bank report highlighted that crypto treasury companies collectively hold 4.8% of Bitcoin's supply and 1.45% of Ethereum's, but their valuations are increasingly tied to the perceived regulatory safety of their assets. Companies pivoting to altcoins like Solana (SOL) and Ripple (XRP) face additional risks due to their lower liquidity and regulatory clarity.

The market's cooling has also exposed flaws in the DAT model. Companies like Eightco Holdings (OCTO) and SRM Entertainment (TRON) have relied on aggressive equity raises and debt financing to fund crypto purchases, creating a fragile capital structure. As prices decline, these firms face margin calls and dilution pressures, forcing some to liquidate holdings to meet obligations. The collapse of the "buy crypto, pump stock" narrative has led to a reevaluation of whether these companies offer genuine value beyond speculative exposure.

Looking ahead, the sector's survival may hinge on regulatory clarity and the ability of firms to diversify their strategies. While Bitcoin and Ethereum remain the most defensible assets for treasuries, the failure of altcoin-focused companies could accelerate consolidation. Larger firms like Strategy (MSTR) and BitMine Immersion may acquire distressed assets from smaller players, reshaping the market. However, without a shift toward sustainable business models, the crypto treasury trend risks becoming another speculative bubble.

[1] Tron Inc. Shares Tumble 85% From June Peak Amid DAT Market ... (https://decrypt.co/342362/tron-inc-shares-june-peak-dat-market-slump)

[2] TRON (TRX) Price History - BitScreener (https://bitscreener.com/coins/tron/price-history)

[8] TRON (TRX) Price Prediction 2025: Technical Strength Meets Regulatory ... (https://www.btcc.com/en-US/square/C0inX/984882)

[10] The Rise of Crypto Treasury Companies - AMINA Bank (https://aminagroup.com/research/the-rise-of-crypto-treasury-companies/)

[13] From Bitcoin To Ethereum: The Rise Of Crypto Treasury Strategies (https://www.forbes.com/sites/clorischen/2025/07/19/from-bitcoin-to-ethereum-the-rise-of-crypto-treasury-strategies/)