$XRP $FTT $XLM The U.S. District Court overturned the controversial SEC rule on dealers, stating that it exceeds the SEC's statutory authority under the Exchange Act. The court sided with the plaintiffs, including key industry stakeholders, who argued that the SEC unlawfully expanded the definition of 'dealer' to include entities and activities not covered by the law. By siding with the plaintiffs, the court found that the rulemaking lacked legal principles or historical precedent. It emphasized the importance of adhering to statutory limitations, especially in a dynamic area like cryptocurrency. The court concluded that the SEC's broad interpretation of the term 'dealer' imposes unnecessary burdens on participants in the digital asset market.

Industry groups such as the Blockchain Association and Crypto Freedom Texas praised the decision. Supporters believe that this ruling sends a strong signal to regulators, urging them to create rules that align with legislative intent.

The court's decision against the SEC's dealer rule has significant implications for decentralized finance (DeFi) exchanges and ongoing legal proceedings.