【U.S. Texas Court Orders SEC to Abolish Controversial Rule Redefining 'Dealer' Term】On November 22, news broke that a Texas court has ordered the U.S. Securities and Exchange Commission (SEC) to abolish a controversial rule that broadly redefined the term 'dealer,' affecting both the crypto industry and traditional financial companies. The rule was passed by a 3 to 2 vote among SEC commissioners in February, and the court found that the rule exceeded the SEC's statutory authority. Traditionally, a dealer refers to an entity that buys and sells securities for its own account, rather than trading on behalf of others. The SEC's expanded definition aimed to include any entity that has the effect of providing market liquidity, particularly in the U.S. Treasury market. Participants in the crypto industry initially objected to the rule because a footnote in the original proposal explicitly stated that entities 'involved in crypto securities trading' would be required to comply with securities laws, register with the SEC, and join industry-supported self-regulatory organizations. In other words, the expanded interpretation effectively eliminated the traditional distinction between 'trader' and 'dealer.' (The Block)

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