On Thursday, a federal court in Texas delivered a devastating blow to the U.S. Securities and Exchange Commission’s crypto policy. The judge ruled that expanding an existing securities act to include decentralized finance projects and users was illegal and went beyond the regulator’s authority.
Judge Reed O’Connor You can also get a grant Summary judgment was granted to the Blockchain Association. This crypto lobbying group sued the SEC. April is a month of celebrations. The agency has expanded the legal definition of “word” “dealer” Include DeFi Protocols and transactions
DeFi is the term used to describe non-custodial encryption applications on networks, such as Ethereum You can also find out more about the following: Solana This allows traders to purchase, sell, lend, and borrow crypto-assets without the need for third party intermediaries such as banks. The SEC’s interpretation of the dealer rule would have required DeFi projects and users to register as securities exchanges and brokers—the same standards applied to stock exchanges and Wall Street traders.
Judge O’Connor determined today not just that the Blockchain Association's lawsuit had merits—but that its argument was so compelling that the issue could be settled without proceeding to a trial.
The SEC has to vacate the crypto-related areas Judge O’Connor found that the SEC violated long-standing norms by modifying its dealer rule in early this year. The judge found that by adjusting the SEC’s dealer rule the SEC broke long-standing standards, as it confused everyday DeFi brokers with professional financial agents.
“The Rule as it currently stands de facto removes the distinction between ‘trader’ and ‘dealer’ as they have commonly been defined for nearly 100 years,” O’Connor wrote a letter on Thursday.
The Blockchain Association hailed the decision as an important victory in the fight against the SEC’s current hostile crypto policies.
“The Dealer Rule was an attempt by the SEC to advance the agency’s anti-crypto crusade,” Blockchain Association CEO Kristin smith said in a press release shared with Decrypt. “Following today’s ruling, the agency’s overreach is rolled back and the digital asset industry is protected from this unlawful rule.”
The SEC has not responded immediately to DecryptRequest for comments regarding the court’s decision today.
Today’s decision was handed down just minutes after SEC Chair Gary Gensler—the driving force behind the agency’s Crypto crackdown—announced he plans to resign in the wake of Donald Trump’s re-election. Gensler is a Democrat who was appointed by Joe Biden. The following are some of the ways to get in touch with each other He will resign the day after Trump’s inauguration, which is January 20.
Trump promised It is important to choose an SEC chairman who is a staunch supporter of the crypto industry. How such a nominee would deal with the current slew pending lawsuits at the SEC remains to be seen. The Lawsuits Many of America’s leading crypto projects and firms have been targeted.
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