Welcome Crypto Reader: Lawsuit Against SEC for Unfair Dealer Definition
The Blockchain Association and the Crypto Freedom Alliance of Texas have filed a lawsuit against the U.S. Securities and Exchange Commission, challenging its expanded definition of “dealer” to include ordinary digital asset trading. The suit argues that the rule is unfairly targeting individuals engaging in digital asset trading.
SEC Faces Increasing Crypto Pressure
The Blockchain Association (BA) and the Crypto Freedom Alliance of Texas (CFAT) have launched a lawsuit against the U.S. Securities and Exchange Commission (SEC) in Texas. They believe the SEC has overstepped its legal boundaries by broadening the definition of “dealer” under the Securities Exchange Act of 1934.
- The BA and CFAT argue that the SEC’s recent decision to expand the “Dealer Rule” is hindering innovation in the U.S. digital asset sector.
- In February, the SEC introduced new regulations that extend the definitions of “dealer” and “government securities dealer,” requiring more participants in the crypto market to register and comply with federal securities laws.
SEC Wants To Unlawfully Regulate
Blockchain Association CEO Kristin Smith criticized the rule, stating it is yet another example of the SEC’s efforts to regulate beyond its jurisdiction. The rule has been deemed as part of the SEC’s ongoing anti-digital asset stance, unlawfully expanding the agency’s powers and potentially driving U.S. companies abroad.
- The lawsuit also highlighted the SEC’s ambiguous stance on which digital asset transactions qualify as securities, leading to industry uncertainty.
- The lawsuit points out that the dealer definition excludes individuals who buy or sell securities for their own accounts, requiring a clear distinction between a dealer and a trader.
Crypto Market Pressures on the SEC
The cryptocurrency market is putting pressure on the SEC, leading to the resignation of two SEC lawyers following sanctions from a federal judge. The judge accused the agency of a “gross abuse of power” in handling a case against a Utah-based crypto company, Debt Box.
Hot Take: Stay Informed, Engaged, and Empowered
As a vigilant and engaged member of the crypto community, it is crucial to stay informed about the regulatory landscape affecting digital assets. Stay empowered by educating yourself about the latest developments and actively participating in discussions and initiatives that advocate for a fair and transparent regulatory framework in the crypto space. Your engagement and advocacy can make a significant difference in shaping the future of digital currencies. Stay informed, stay involved, and stay empowered!
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