{"id":77022,"date":"2024-04-23T12:46:19","date_gmt":"2024-04-23T16:46:19","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=77022"},"modified":"2024-04-23T12:49:57","modified_gmt":"2024-04-23T16:49:57","slug":"blockchain-association-and-cfat-sues-sec-over-dealer-rule","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/blockchain-association-and-cfat-sues-sec-over-dealer-rule\/","title":{"rendered":"Blockchain Association and CFAT Sues SEC Over Dealer Rule"},"content":{"rendered":"\n

Citing regulatory overreach<\/a>, the\u00a0Blockchain Association and Crypto Freedom Alliance sue the SEC over the expanded definition of digital asset dealers.<\/p>\n\n\n\n

\"Blockchain<\/figure>\n\n\n\n

A lawsuit has been initiated against the U.S. Securities and Exchange Commission (SEC) by the Blockchain Association and the Crypto Freedom Alliance of Texas (CFAT).<\/p>\n\n\n\n

The lawsuit challenges a new rule that broadens the definition of a “dealer” in the context of digital assets.<\/p>\n\n\n\n

However, the legal challenge, filed in the District Court for the Northern District of Texas, seeks to reverse this broad interpretation.<\/p>\n\n\n\n

SEC Accused of Digital Asset Regulation Overreach<\/h2>\n\n\n\n

Plaintiffs contend that the new definition may erroneously classify them as dealers, even those who merely trade digital assets.<\/p>\n\n\n\n

Meanwhile, this apprehension stems from the regulation's emphasis on the consequences of trading instead of the transactions' intrinsic characteristics.<\/p>\n\n\n\n

They contend that the regulation fails to distinguish between dealers and individuals (traditionally exempt from dealer status) who trade for their accounts.<\/p>\n\n\n\n

Purportedly violating legal requirements, the lawsuit asserts that the\u00a0SEC circumvented essential protocols by failing to undertake an economic analysis or give due consideration to public feedback.<\/p>\n\n\n\n

The Blockchain Association\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> has voiced dissent, highlighting the potential for the regulation to affect all digital asset market participants, including users who exclusively engage in liquidity pools.<\/p>\n\n\n\n

They contend that this extensive scope demonstrates the SEC's regulatory excess.<\/p>\n\n\n\n

Blockchain Association Opposes Warren's Digital Asset Legislation<\/h2>\n\n\n\n

The SEC endorsed the revised dealer definition by a 3-2 vote in February, placing greater emphasis on conducting a functional analysis of activities related to securities trading.<\/p>\n\n\n\n

However, in support of its ruling, the regulator contended that omitting cryptocurrencies from this definition might confer an unjust advantage on crypto dealers vis-\u00e0-vis conventional financial institutions.<\/p>\n\n\n\n

Critics have characterized the SEC's stance on digital assets as lacking coherence.<\/p>\n\n\n\n

Moreover, uncertainty pervades the industry as the commission has not definitively established which digital asset transactions constitute securities transactions.<\/p>\n\n\n\n

According to its detractors, the SEC's ad hoc classification of digital assets<\/a> as securities contributes to regulatory ambiguity.<\/p>\n\n\n\n

In addition, the Blockchain Association has also expressed concern over Senator Elizabeth Warren's proposed legislation in related news.<\/p>\n\n\n\n

Critics contend that the Digital Asset Anti-Money Laundering Act of 2023 may compromise the competitiveness and economic stability of the United States.<\/p>\n\n\n\n

Additionally, such legislation warns the association that it could force U.S. companies to relocate overseas and endanger thousands of Americans' employment.<\/p>\n\n\n\n

The lawsuit petitions the court to declare the SEC's regulation unlawful, arbitrary, or capricious.<\/p>\n\n\n\n

Furthermore, the petition aims to obstruct the SEC's implementation of this regulation, emphasizing its capacity to discourage domestic innovation.<\/p>\n","protected":false},"excerpt":{"rendered":"

Citing regulatory overreach, the\u00a0Blockchain Association and Crypto Freedom Alliance sue the SEC over the expanded definition of digital asset dealers. A lawsuit has been initiated against the U.S. Securities and Exchange Commission (SEC) by the Blockchain Association and the Crypto Freedom Alliance of Texas (CFAT). The lawsuit challenges a new rule that broadens the definition of a […]<\/p>\n","protected":false},"author":56,"featured_media":77041,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[12056,19267,1502,3955],"class_list":["post-77022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain-association","tag-cfat","tag-regulation","tag-securities-and-exchange-commission"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/sec-garygensler-GettyImages-1845878468.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/77022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=77022"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/77022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/77041"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=77022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=77022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=77022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}