Crypto Groups Sue SEC Over New 'Dealer' Definition Rule

Apr 23, 2024, 01:07 PM

Two cryptocurrency industry groups, the Blockchain Association (BA) and the Crypto Freedom Alliance of Texas (CFAT), have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). The legal challenge is in response to a newly implemented SEC rule that broadens the definition of a 'dealer' in securities markets. This rule, described by the plaintiffs as arbitrary and capricious, allegedly poses significant risks to digital asset market participants in the U.S. The groups argue that the rule stifles innovation and harms the digital asset industry by leading with unwritten rules and guidance.