A federal court in Texas has struck down a U.S. Securities and Exchange Commission (SEC) rule that would have expanded the definition of a securities dealer to include cryptocurrency companies, CoinDesk reported.
The court ruled that the SEC exceeded its statutory authority and ordered the rule to be repealed. The ruling was a major legal blow to SEC Chairman Gary Gensler, who announced that day that he would step down in January next year.
The Blockchain Association and the Crypto Freedom Alliance of Texas filed a lawsuit, and the court quickly ruled in favor of the crypto industry. Blockchain Association CEO Kristin Smith called this an industry victory that protects the digital asset industry from illegal regulations.