The cryptocurrency industry is taking proactive legal action against US federal regulators. The Blockchain Association, an influential industry lobbying group, filed a lawsuit against the Securities and Exchange Commission (SEC) on Tuesday, challenging a new rule that expands the definition of “dealer” to include users and projects. of decentralized finance (DeFi).
The lawsuit, filed in Texas, accuses the SEC of recklessly applying rules designed for traditional financial markets to the digital asset industry. The rule change, announced in February, requires DeFi projects to register as exchanges or brokers or face legal consequences.
Today, BA and CFAT filed a suit against the SEC asking the court to strike down their arbitrarily applied and unclear Dealer Rule expansion. This rule stifles innovation, harms the burgeoning digital asset industry, and emboldens the SEC to lead by unwritten rules and guidance.… pic.twitter.com/3xIMJIAwyP
— Blockchain Association (@BlockchainAssn) April 23, 2024
Lack of communication of interpretation possibilities becomes a problem for investors
The SEC did not offer clear guidance on how DeFi projects could comply with the new rules, especially considering their automated nature and no human oversight. Additionally, the rule could equate some DeFi traders with professional stock traders, which worries the industry.
Cryptocurrency groups have criticized the regulation as worrying interference. Even SEC Commissioner Hester Peirce, known for her support of the cryptocurrency industry, condemned the rule as harmful to the market.
The Blockchain Association’s lawsuit seeks a court ruling declaring that the SEC violated the Administrative Procedures Act by expanding the definition of “dealer” without properly considering industry comments and complaints.
Laura Sanders, policy advisor at the Blockchain Association, says the industry is taking an offensive stance against hostile regulators. She highlights that the industry’s participation in regulatory processes has not been reciprocated by the SEC.
The lawsuit alleges that the SEC violated the law by ignoring the rule’s negative impacts on digital asset markets. Furthermore, the commission did not consider the additional costs imposed on cryptocurrency markets.
This legal action is the latest in a series of pre-emptive lawsuits filed against the SEC in recent months. Last month, the DeFi Education Fund sued the SEC to assert that the free distribution of tokens is not a securities violation. In February, a group of cryptocurrency companies, including Coinbase, sued the SEC, challenging its jurisdiction over the industry.
Both lawsuits were filed in Texas, a state considered crypto-friendly. These initiatives reflect the cryptocurrency industry’s growing resistance against government regulation perceived as harmful to the DeFi sector.
Source: https://www.criptofacil.com/lobistas-de-cripto-abrem-processo-contra-a-sec/
