Crypto Freedom Alliance of Texas Sues Gary Gensler’s SEC
A crypto association in Texas, the Crypto Freedom Alliance of Texas (CFAT), has filed a complaint against Gary Gensler’s SEC. The complaint was filed in collaboration with Lejilex, a company that deals with digital assets. The official statement from the two complainants reveals that the complaint was filed for the alleged unlawful targeting by the SEC of the digital asset industry.
Crypto News: Lawsuit Against SEC by Gary Gensler
Lejilex and CFAT have reported the Securities and Exchange Commission to challenge their alleged unlawful claim that the agency has regulatory authority over virtually all digital asset transactions in Texas and the United States. They believe that the SEC has usurped almost total jurisdiction over the digital asset sector, despite several commissioners acknowledging that Congress has never granted the agency the authority to do so.
The complaint was filed in anticipation of the launch of a new digital asset trading platform by Lejilex. The goal is to have a court certify that transactions of digital assets are not to be considered sales of securities subject to SEC registration requirements.
The Central Issue
According to the complainants, the SEC not only does not have the legal authority to regulate most digital asset transactions but has also shown itself to be unprepared to respect the limits placed on its jurisdiction by Congress. The risk is that the SEC may end up unilaterally taking control of this industry without respecting its clear statutory mandate that prevents such a massive expansion of its power.
The Complainants
Lejilex is a for-profit company based in Texas that has developed a new platform for the exchange of digital assets called Legit.Exchange. CFAT is a non-profit trade association based in Texas that supports policies on digital assets in Texas to promote innovation and economic growth while also protecting consumers. They believe that blockchain technology paves the way for the next generation of the Internet and that Texas has a lot to gain from being a leader in digital asset policy.
Hot Take: Can Crypto Exchanges Operate Without Fear?
Lejilex and CFAT’s lawsuit against Gary Gensler’s SEC raises important questions about regulatory authority over digital asset transactions. It highlights how such actions can paralyze entrepreneurs seeking to create legal businesses and technologies within this space. This case could potentially impact how crypto exchanges operate in Texas and beyond, paving a path for clearer regulations surrounding digital assets.
By
By
By
By
By