SEC Sued by Crypto Industry Groups Over Dealer Rule Expansion

The US Securities and Exchange Commission (SEC) has been sued today by two prominent crypto industry groups. Indeed, the government agency has faced legal action over a change to rules governing regulatory considerations for a securities “dealer” according to a filing made today.

Both the Blockchain Association and Crypto Freedom Alliance of Texas have filed a complaint in Texas federal court. Specifically, it combats the rule that would broaden the definition of securities dealer. In response, the crypto industry groups have accused the SEC of exceeding its authority with the change in rules.

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SEC Faces Lawsuit Over ‘Dealer Rule Expansion’

It is no secret that the digital asset industry and the SEC have displayed a rather combative relationship. The two sides have been engulfed in near-consistent legal conflict, due in large part to the agency’s continued commitment to regulation through enforcement.

Now, it finds itself on the receiving end of legal action. Indeed, the SEC has been sued by two prominent crypto industry groups over a new rule change. Indeed, both the Blockchain Association and Crypto Freedom Alliance of Texas have filed a complaint with the federal court.

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The lawsuit is in response to a rule change that would broaden the definition of what regulators perceive to be a “dealer” of securities. According to the suit, both groups claim the rule is far too vague, with no consideration for its impact on the digital asset market as a whole.

In a post to X (formally Twitter), the Blockchain Association discussed the lawsuit. Specifically, they note the rule change “stifles innovation, harms the burgeoning digital asset industry, and emboldens the SEC to lead by unwritten rules and guidance.” Conversely, the lawsuit is requesting the court strike down the dealer rule expansion.