{"id":10535,"date":"2024-04-24T02:18:42","date_gmt":"2024-04-24T02:18:42","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/legal-clash-erupts-2-crypto-companies-sue-us-sec-over-controversial-dealer-rule\/"},"modified":"2024-04-24T02:18:42","modified_gmt":"2024-04-24T02:18:42","slug":"legal-clash-erupts-2-crypto-companies-sue-us-sec-over-controversial-dealer-rule","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/legal-clash-erupts-2-crypto-companies-sue-us-sec-over-controversial-dealer-rule\/","title":{"rendered":"Legal Clash Erupts: 2 Crypto Companies Sue US SEC Over Controversial \u2018Dealer\u2019 Rule"},"content":{"rendered":"

Two prominent crypto industry groups, the Blockchain Association and the Crypto Freedom Alliance (CFAT) of Texas, have filed a lawsuit against the US Securities and Exchange Commission (SEC) to contest a newly implemented rule expanding the definition of a \u201cdealer\u201d in securities.\u00a0<\/p>\n

The complaint, lodged in a federal court in Texas, alleges <\/a>that the SEC exceeded its authority and approved an arbitrary and capricious rule.<\/p>\n

<\/span>Crypto Industry Takes Legal Action Against SEC<\/span><\/h2>\n

In the lawsuit<\/a>, the crypto firms argue that the new rule is \u201cvague, overly broad\u201d and fails to provide clarity on its implications for crypto market participants.\u00a0<\/p>\n

In particular, under the SEC rule, developers of automated software and liquidity providers for certain trading protocols could fall within the definition of \u201cdealer,\u201d resulting in increased costs and additional regulatory requirements.<\/p>\n

The complaint further contends that the SEC\u2019s implementation of the Dealer Rule violates the Administrative Procedure Act\u00a0(APA), preventing industry participants from operating under clearly communicated rules established through a fair and transparent rulemaking process.\u00a0<\/p>\n

According to the complaint, the SEC\u2019s interpretation of the term \u201cdealer\u201d as outlined in the Securities Exchange Act of 1934 is an \u201cunlawful and radical expansion\u201d that departs from its longstanding and \u201cwell-established meaning.\u201d\u00a0<\/p>\n

The complaint also emphasizes that the rule will cause \u201cirreparable harm\u201d to the millions of Americans and businesses involved in digital asset trading. The two crypto firms also cite the SEC\u2019s refusal to adequately address concerns raised during the comment period and failure to assess the costs and benefits of its approach as violations of the APA.\u00a0<\/p>\n

<\/span>CEO Slams SEC\u2019s Regulatory Overreach<\/span><\/h2>\n

Blockchain Association CEO Kristin Smith criticized the SEC\u2019s regulatory overreach and failure to address industry concerns in a compressed comment period. Smith stated:<\/p>\n

The Dealer Rule advances the SEC\u2019s anti-digital asset crusade and unlawfully redefines the boundaries of its statutory authority granted by Congress. It threatens to drive US companies offshore and incite fear in American innovators.\u00a0<\/p>\n

Smith emphasized the Blockchain Association and the Crypto Freedom Alliance of Texas\u2019s commitment to protecting the American digital asset ecosystem. <\/p>\n

Ultimately, the lawsuit seeks declaratory judgment and injunctive relief to overturn the SEC\u2019s rule expansion and prevent its application within the industry.<\/p>\n

The legal battle between crypto industry groups and the SEC highlights the ongoing struggle to establish a clear regulatory framework for the emerging digital asset market.\u00a0<\/p>\n

As the case unfolds, its outcome could have significant implications for the industry\u2019s future and the balance between regulatory oversight and innovation in the United States.<\/p>\n

<\/p>\n

Featured image from Shutterstock, chart from TradingView.com <\/p>\n","protected":false},"excerpt":{"rendered":"

Two prominent crypto industry groups, the Blockchain Association and the Crypto Freedom Alliance (CFAT) of Texas, have filed a lawsuit against the US Securities and Exchange Commission (SEC) to contest a newly implemented rule expanding the definition of a \u201cdealer\u201d in securities.\u00a0 The complaint, lodged in a federal court in Texas, alleges that the SEC […]<\/p>\n","protected":false},"author":1,"featured_media":10536,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Legal Clash Erupts: 2 Crypto Companies Sue US SEC Over Controversial \u2018Dealer\u2019 Rule - Bitrabo","description":"Two prominent crypto industry groups, the Blockchain Association and the Crypto Freedom Alliance (CFAT) of Texas, have filed a lawsuit against the US Securities"},"footnotes":""},"categories":[316],"tags":[1298,1951,3634,504,3132,3632,795,2926,520,3633],"class_list":["post-10535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-clash","tag-companies","tag-controversial","tag-crypto","tag-dealer","tag-erupts","tag-legal","tag-rule","tag-sec","tag-sue"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/10535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=10535"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/10535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/10536"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=10535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=10535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=10535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}