According to BlockBeats news, on November 22, a Texas court ordered the U.S. Securities and Exchange Commission (SEC) to repeal a controversial rule that broadly redefined the term “dealer.” , affecting both the crypto industry and traditional financial companies.
The rule was passed by SEC committee members in a 3-2 vote 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 for others. The SEC’s expanded definition is intended to include any entity that has the effect of providing market liquidity, particularly in the U.S. Treasury market.
Crypto industry players initially raised objections to the rule, as a footnote in the original proposal specified that entities “involved in trading crypto securities” would be required to comply with securities laws, register with the SEC and join industry-backed self-regulatory organizations.
In other words, the expanded explanation effectively eliminates the traditional distinction between “trader” and “dealer.” (The Block)
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