According to BlockBeats, the Blockchain Association in the United States announced on April 23 that it has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over the newly enacted 'Dealer Rule'. The Blockchain Association, in conjunction with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit in the Northern District Court of Texas, asking the court to order the revocation of the SEC's new rule.
In February of this year, the SEC expanded the definition of 'dealer' through the new rule to include participants providing liquidity for DeFi protocols. This essentially requires liquidity providers on decentralized finance (DeFi) protocols to comply with the relevant requirements of securities dealers in traditional financial markets. The Blockchain Association pointed out that the SEC ignored the opposition opinions submitted during the previous review period and ignored its 'exceeding statutory authority' question, and insisted on promulgating this 'unfeasible rule', which will seriously hinder the innovation of the digital asset ecosystem.
Kristin Smith, CEO of the Blockchain Association, stated that the new rule is another example of the SEC's attempt to illegally regulate and hinder the development of digital assets. The SEC ignored its legal obligations, ignored a large number of concerns and oppositions, and acted arbitrarily. This anti-digital asset 'Dealer Rule' will force American companies to move overseas and cause panic among American innovators.
The Blockchain Association believes that the SEC's move violates the 'Administrative Procedure Act' and illegally expands its statutory authority. The lawsuit asks the court to rule that the SEC's new rule is invalid.