Crypto groups sue SEC, claiming overreach in new dealer rule definition
Summary
The Blockchain Association and Crypto Freedom Alliance of Texas have filed a legal action against the SEC, arguing that the SEC overstepped its bounds by sanctioning a rule that redefines the parameters for what constitutes a “dealer” of securities. They claim that the rule violates the Administrative Procedure Act and want it nullified. The rule's lack of clarity has significant adverse effects on the digital asset ecosystem, especially DeFi, implicating liquidity providers, DeFi software, and developers. The SEC failed to address industry stakeholders' concerns during the comment period. Notable members of the Blockchain Association include Coinbase, Ripple, Kraken, Circle, and others.
