Crypto lobbyists sue SEC over regulatory measures
The U.S. SEC is facing legal action from the Blockchain Association and the Crypto Freedom Alliance of Texas over a new rule that they believe will have a negative impact on the crypto industry. The rule, which was adopted in February, extends federal securities laws to market participants involved in cryptocurrency transactions. The complaint filed in a Texas district court alleges violations of the Administrative Procedures Act (APA), which governs federal agency rulemaking. The Blockchain Association CEO, Kristin Smith, stated that they are seeking declaratory judgment and injunctive relief to overturn the rule expansion and prevent its use against the industry. The rule applies to crypto assets that meet the definition of securities or government securities, with exceptions for assets valued under $50 million, including defi. The SEC’s new rule has received criticism from various crypto industry groups. The complaint argues that the Commission failed to exempt the digital assets industry and did not adequately explain how and when the rule would apply to these markets. The SEC defends its actions, stating that it follows its mandates and the legal framework for administrative procedures. This lawsuit adds to a series of legal challenges the SEC has faced over the past year, including a previous lawsuit from the Crypto Freedom Alliance of Texas and LEJILEX, as well as legal action from the DeFi Education Fund, Beba, and Coinbase. The Blockchain Association has also expressed concerns about Senator Warren’s AML bill, calling it a threat to the US.
