SEC Sued by Crypto Industry Groups Over Dealer Rule Expansion

The U.S. Securities and Exchange Commission (SEC) is facing legal challenges over its recently expanded "dealer" rule, with multiple crypto industry groups filing lawsuits. This expansion of the dealer definition has sparked controversy and raised concerns about regulatory overreach within the digital asset space.

The Blockchain Association and the Crypto Freedom Alliance of Texas have filed a lawsuit against the U.S. Securities and Exchange Commission, alleging that its new rule oversteps its authority. Today, BA and CFAT filed a suit against the SEC asking the court to strike down their arbitrarily applied and unclear Dealer Rule expansion. This rule stifles innovation, harms the burgeoning crypto industry and could have significant implications for market participants.

Two crypto industry groups sued the Securities and Exchange Commission on Tuesday to challenge a new rule that broadened the definition of what the regulator considers a "dealer" in securities. This broadened definition could encompass a wider range of crypto entities, subjecting them to stricter regulatory requirements.

On Ap, two crypto industry groups, the Blockchain Association and the Crypto Freedom Alliance of Texas sued the SEC in federal court in Texas, challenging the rule’s legality and arguing that it exceeds the SEC’s statutory authority. The lawsuit seeks to block the implementation of the rule, citing concerns about its potential impact on innovation and market access.

Two crypto industry trade associations on Tuesday sued the U.S. Securities and Exchange Commission to block a new rule that expanded the regulator\'s interpretation of what constitutes a "dealer" requiring registration. The groups argue that the SEC\'s actions will stifle growth and drive innovation offshore.

Two groups in the cryptocurrency industry sued the Securities and Exchange Commission April 23 over its rule expanding the definition of a dealer. The rule violates the Administrative Procedure Act (APA) and exceeds the SEC\'s authority, according to the plaintiffs. The case is expected to be closely watched by the crypto community as it could have far-reaching consequences for the industry.

This lawsuit represents a significant challenge to the SEC\'s regulatory approach to the crypto industry and highlights the ongoing tension between regulators and the digital asset space. The outcome of this legal battle could shape the future of crypto regulation in the United States.