BlockBeats news, on November 22, a court in Texas, USA, has ordered the U.S. Securities and Exchange Commission (SEC) to rescind a controversial rule that broadly redefined the term 'dealer', impacting the cryptocurrency 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 is an entity that buys and sells securities for its own account, rather than trading on behalf of others. The SEC's expanded definition aims to include any entity that has the effect of providing market liquidity, particularly in the U.S. Treasury market.
Participants in the cryptocurrency industry initially objected to the rule, as the footnote in the original proposal clearly stated that entities involved in 'cryptographic securities trading' would need to comply with securities laws, register with the SEC, and join industry-supported self-regulatory organizations.
In other words, the expanded interpretation effectively eliminates the traditional distinction between 'trader' and 'dealer'. (The Block)