SEC Surrenders in Crypto Battle: “Dealer, You’re Out!”

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Breaking news, y’all! The U.S. Securities and Exchange Commission (SEC) has thrown in the towel on their dealer rule appeal. Why? Because a Texas court said, “Nope, that’s not how the law works, SEC.” The lawsuit was brought by the Blockchain Association and the Crypto Freedom Alliance of Texas (CFAT) in April 2024.

This is a huge win for the crypto industry, who saw the rule as an attempt to control certain trading firms. The SEC’s withdrawal signals a shift in their enforcement strategy under new leadership. You know, the kind that actually listens to reason.

SEC Says “Peace Out” to Dealer Rule Lawsuit

The SEC’s dealer rule wanted to expand the definition of a dealer to include high-frequency trading firms and specific crypto hedge funds. Industry groups argued that the rule was an indirect attempt to regulate crypto trading platforms without congressional approval.

The Texas court struck down the rule, stating that it exceeded the SEC’s authority. The SEC initially appealed the decision but has now voluntarily dismissed the appeal. The withdrawal ensures that the dealer rule will not take effect.

Blockchain Association CEO Kristin Smith welcomed the decision, stating, “We first brought this lawsuit to challenge the agency’s unlawful power grab. With today’s final dismissal, we look forward to constructive discussions with the SEC.”

Stay tuned for more updates on this exciting crypto drama!

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2025-02-20 00:55