CFAT and Blockchain Association Prevail Against SEC - Broker-Dealer Rule Struck Down
Washington, D.C. (Nov. 21, 2024) – Today, the United States District Court of the Northern District of Texas ruled the SEC’s dealer rule must be struck down, stating the SEC exceeded its statutory authority.
“Today’s court ruling is a victory not just for Blockchain Association and the Crypto Freedom Alliance of Texas – but for the entire digital asset industry. The Dealer Rule was an attempt by the SEC to advance the agency’s anti-crypto crusade, unlawfully redefining the boundaries of its statutory authority granted by Congress. Following today’s ruling, the agency’s overreach is rolled back and the digital asset industry is protected from this unlawful rule,” said Blockchain Association CEO Kristin Smith.
“Litigation isn’t always the preferred path, but in some cases it’s critical to defending the industry against overzealous regulators, and at those moments we have a responsibility to challenge such actions. The SEC clearly exceeded its authority by adopting a definition of ‘dealer’ that is, in the Court’s words, ‘untethered from the text, history, and structure of the Exchange Act,’” said Blockchain Association Head of Legal Marisa Coppel.
Blockchain Association and the Crypto Freedom Alliance of Texas first brought this challengeagainst the SEC in April of this year, arguing the SEC’s misguided attacks against the industry amounted to arbitrary and capricious rulemaking.
Blockchain Association is the collective voice of the cryptocurrency industry. Our members include the sector’s leading investors, companies, and projects, working together to support a future-forward, pro-innovation national policy and regulatory framework for the crypto economy. Find us at theblockchainassociation.org. Follow us @BlockchainAssn.
Contact for Blockchain Association: media@theblockchainassociation.org
Crypto Freedom Alliance of Texas is a nonprofit trade association that advocates for the responsible development of digital asset policies in Texas that will foster innovation and economic growth, while protecting consumers. We believe blockchain technology paves the way for the next generation of the internet and that Texas has a lot to gain from being a leader in digital asset policy. CFAT counts as members several companies at the forefront of digital asset innovation, including Coinbase, a16z Crypto, Ledger, Paradigm, and Blockchain Capital. Learn more at https://cryptoalliancetx.org/.
Contact for Crypto Freedom Alliance of Texas: dealer@skdknick.com
