According to the Wall Street Journal, two US institutions that have an important place in the cryptocurrency industry, The Blockchain Association and the Texas Crypto Freedom Alliance sued the SEC over its enactment of the rulemaking that expanded the definition of securities dealer to include those acting as liquidity providers in DeFi protocols.
US institutions claimed that the SEC’s latest expansion of the definition of securities dealer was “arbitrary”.
The Blockchain Association and the Texas Crypto Freedom Alliance said in their complaint to a federal court in Texas that the SEC overstepped its authority and approved an arbitrary and capricious rule.
Institutions that play an active role in the crypto industry argued in the lawsuit that the new rule expanding the definitions was unclear, its scope was too broad, and cryptocurrency He said he did not disclose the impact on market participants.
The Blockchain Association called the new dealer definition an “unenforceable rule” that would hinder innovation in the digital asset ecosystem.
SEC’s new dealer definition comes after a vote against the rule in a 3-2 vote SEC members Hester Pierce and Mark Uyeda including cryptocurrency It sparked outrage from many in the community.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!