SEC Sued by Crypto Industry Groups Over Definition of ‘Dealer’ in

SEC Sued by Crypto Industry Groups Over Definition of ‘Dealer’ in

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second sued by crypto industry groups
over definition of dealer insecurities
ruem and hexan last updated April 23
2024 at 1759 GMT plus 32-minute read the
blockchain association and the crypto
Freedom Alliance of Texas cat have taken
legal action against the United States
Securities and Exchange commission
second filing a lawsuit in the Northern
District of Texas the lawsuit aims to
challenge the second’s recent expansion
of the dealer rule which the industry
groups argue is stifling innovation in
the US digital asset Market the B and
Cat assert that the second exceeded its
Authority by implementing a broad
interpretation of the term dealer within
the Securities Exchange Act of of 1934
second adopts new rules to redefine
dealer in February the second adopted
new rules that redefine dealer and
government securities dealer as a result
more participants in the crypto Market
are required to register join a
self-regulatory organization and comply
with Federal Securities laws according
to the lawsuit this expansion creates a
vague and burdensome regulatory
environment for businesses involved in
digital asset trading the plaintiffs
alleged that the second failed to
adequately address public concerns
raised during The Limited comment period
and neglected to assess the potential
negative impacts of the rule Kristen
Smith CEO of the blockchain association
criticized the second for attempting to
regulate outside its Authority stating
that the dealer rule is part of the
second’s anti-d digital asset Crusade
she believes that the rule unlawfully
redefines the boundaries of the second
statutory Authority granted by Congress
which could drive us companies offshore
and instill fear in American innovators
the lawsuit seeks a court order to
overturn the expansion of the dealer
rule based on violations of the
administrative procedure act APA the APA
ensures fair and transparent rulem by
requiring agencies to consider public
feedback and provide clear guidelines
Smith emphasized that are seeking
declaratory judgment and injunctive
relief Against The Regulators in order
to overturn the expansion of the rule
their ultimate goal is to prohibit its
use against the industry preventing
further harm caused by what they
perceive as an overreaching regulator
the blockchain association and the
crypto Freedom Alliance of Texas
represent a significant portion of the
cryptocurrency industry including
leading investors companies and projects
their Collective efforts advocate for a
national policy framework within the US
that Fosters local Innovation and
responsible velopment in the digital
asset space second wages wore against
crypto companies over the past year the
second has filed numerous lawsuits
against crypto firms with second chair
Gary Gensler consistently asserting that
most cryptocurrencies should be
classified as Securities for one the
agency initiated a civil case against
Sam bankman fried company founder of FDX
in addition to the case against bankman
fried the second filed lawsuits against
other major crypto players including
binance its CEO Chang Pang Xiao and
coinbase many industry players and
advocacy groups have called on the
second to establish clear regulatory
guidelines to Foster Innovation within
the United States the second has
reportedly issued subpoenas is part of
its campaign to potentially classify a3m
eth as a security under its regulatory
purview T here still are those who would
like to whittle away at the seconds
disclosure regime said the second chair
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Ruholamin Haqshanas

Last updated:

April 23, 2024 at 17:59 GMT+3

| 2 min read

The Blockchain Association and the Crypto Freedom Alliance of Texas (CFAT) have taken legal action against the United States Securities and Exchange Commission (SEC), filing a lawsuit in the Northern District of Texas.

The lawsuit aims to challenge the SEC’s recent expansion of the “Dealer Rule,” which the industry groups argue is stifling innovation in the U.S. digital asset market.

The BA and CFAT assert that the SEC exceeded its authority by implementing a broad interpretation of the term “dealer” within the Securities Exchange Act of 1934.

SEC Adopts New Rules to Redefine “Dealer”.

In February, the SEC adopted new rules that redefine “dealer” and “government securities dealer.”

As a result, more participants in the crypto market are required to register, join a self-regulatory organization, and comply with federal securities laws.

According to the lawsuit, this expansion creates a vague and burdensome regulatory environment for businesses involved in digital asset trading.

The plaintiffs allege that the SEC failed to adequately address public concerns raised during the limited comment period and neglected to assess the potential negative impacts of the rule.

Kristin Smith, CEO of the Blockchain Association, criticized the SEC for attempting to regulate outside its authority, stating that the Dealer Rule is part of the SEC’s “anti-digital asset crusade.”

She believes that the rule unlawfully redefines the boundaries of the SEC’s statutory authority granted by Congress, which could drive U.S. companies offshore and instill fear in American innovators.

The lawsuit seeks a court order to overturn the expansion of the Dealer Rule based on violations of the Administrative Procedure Act (APA).

The APA ensures fair and transparent rulemaking by requiring agencies to consider public feedback and provide clear guidelines.

Smith emphasized that they are seeking “declaratory judgment and injunctive relief” against the regulators in order to overturn the expansion of the rule.

Their ultimate goal is to prohibit its use against the industry, preventing further harm caused by what they perceive as an overreaching regulator.

The Blockchain Association and the Crypto Freedom Alliance of Texas represent a significant portion of the cryptocurrency industry,…

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