The United States Securities and Exchange Commission voluntarily withdrew its appeal against a Texas Federal Court verdict, killing its broker-deale rule, seeking to expand the agency’s inspection.
The Commission ruled after the O’Coner of Texas in the northern district of the US District Judge Reid O’Coner that the SEC with the rule “had crossed its statutory authority”.
In February 2024 was finally finalized finally, decentralized finance platforms, liquidity providers and automated market manufacturers wanted to classify more than $ 50 million as dealers, which subjugate them to the registration requirements. Was doing.
O’Coner ruled that the SEC’s approach was “immoral” from the US securities law, the siding with the industry groups challenged the regulation.
The Blockchain Association and Texas’s Crypto Freedom Alliance argued that the rule would put unnatural compliance with the DEFI protocol, which is a lack of central operators capable of implementing your customer and anti-mani laundering requirements.
On February 19, SEC A notice filed With the fifth circuit court of appeals, stating that it was “proceeding to dismiss the appeal voluntarily”, ending the legal dispute.
Blockchain Association CEO Christin Smith welcomed the SEC’s decision, described it as a significant turn for the agency after the regulatory perfect of former chairman Gary Gensor on Crypto.
He depicted SEC’s broker-deale rule as an “illegal power grab”, which tried to redefine the statutory authority of the agency without proper justification.
SEC’s retreat on the broker-deale rule is the latest sign of transferring tide to Washington’s Crypto’s approach. Out of the Gensler photo, the agency has improved a major course under the new leadership.
President Donald Trump did not waste any time and shook things and distanced the SEC from the aggressive Crupto Crackdown. Acting Chairman Mark Uyda has been leading the agency to a more measured approach since then dialing the litigation attempts that define the tenure of the Gensor.
And the broker-deale rule is not just an enforcement push that is receiving cold shoulder and many high-profile cases against major crypto firms such as-Binance and Coinbase are now put on a break.
