Crypto Organizations Launch Lawsuit Against SEC Over Dealer Rule

By: Eva Baxter

The Blockchain Association and the Crypto Freedom Alliance of Texas, two active bodies in the crypto world, have filed a lawsuit against the US Securities and Exchange Commission (SEC) over the new rule defining the term "dealer" of securities. The parties suggest the SEC has exceeded its authority by sanctioning this regulation, describing it as arbitrary and capricious.

The organizations claim that the new rule threatens the operations of US companies in the crypto sector and intimidates American innovators by unlawfully redefining the SEC's jurisdiction. They seek to have the court nullify the Dealer Rule on the grounds of APA violations, thereby restoring a transparent and equitable rulemaking process.

Marissa Tashman Coppel, the legal lead at Blockchain Association, stated that the rule could have serious implications on the digital asset and DeFi sectors. The law indiscriminately implicates liquidity providers, DeFi software, and developers. The Blockchain Association's members include crypto companies such as Coinbase, Kraken, Circle, and Ripple.