U.S. SEC Loses Crypto Lawsuit Over 'Dealer' Definition That Pushed Into Crypto
A Texas federal court has rejected the SEC's rule expanding the definition of a securities dealer to include more firms, particularly in the cryptocurrency sector. The ruling, issued by Judge Reed O’Connor, stated that the SEC exceeded its statutory authority, leading to the dismissal of the rule approved in February. The decision followed a lawsuit from the Blockchain Association and the Crypto Freedom Alliance of Texas, which argued that the rule was overly vague and would impose unreasonable demands on decentralized finance and crypto traders. The ruling is viewed as a significant legal victory for the cryptocurrency industry against SEC Chair Gary Gensler's regulatory efforts. Gensler's departure coincided with this ruling, which the Blockchain Association's CEO described as a rollback of the SEC's overreach and a protection for the digital asset industry.
