The Blockchain Association (BA) and the Crypto Freedom Alliance of Texas (CFAT) have initiated legal action against the United States Securities and Exchange Commission (SEC) in the Northern District of Texas, which may have a substantial influence on the digital asset market in the United States.
The legal dispute revolves around the recent broadening of the definition of “dealer” as stipulated in the Securities Exchange Act of 1934 by the SEC.
The BA and CFAT contend that the SEC’s interpretation violates established industry practices and exceeds its legal authority.
In addition, the lawsuit contends that the expanded interpretation of “dealer” by the SEC imposes an unjustifiable burden on companies and obstructs progress in the digital asset sector of the United States.
In other news, the US Securities & Exchange Commission allege that Justin Sun’s extensive trips to the US boosts the ground for their lawsuit.
The plaintiffs assert that tens of millions of Americans who engage in cryptocurrency transactions could potentially be harmed as a result of the actions of the SEC.
Moreover, per the plaintiffs, the SEC neglected to sufficiently respond to public concerns that were brought up during the rulemaking process.
According to the lawsuit, the SEC disregarded comments that questioned the rule’s applicability to digital asset technology and failed to conduct an adequate cost-benefit analysis.
The BA, which considers itself to be the “collective voice of the cryptocurrency industry,” asserts that it is on behalf of the most prominent crypto investors, companies, and initiatives.
They affirm their support for a regulatory framework that is both forward-thinking and conducive to innovation in the digital asset industry.
Conversely, CFAT, a for-profit trade association, says that they advocate for the prudent formulation of policies about digital assets in the state of Texas.
They maintain that their primary objective is to promote economic expansion and innovation within the state, all the while safeguarding the interests of consumers.
