Summary
The lawsuit alleges that the SEC rule expanding the definition of a “dealer” to include digital assets activity is overly broad and unconstitutional.
Key Points
1. The lawsuit by the Blockchain Association and Crypto Freedom Alliance of Texas argued that the U.S. Securities and Exchange Commission rule expanding the definition of a “dealer” to include digital assets activity was overly broad and went beyond the agency’s authority.
2. The plaintiffs claimed that the new rule would have a chilling effect on innovation in the digital assets space and could potentially harm smaller companies and startups in the industry.
3. The lawsuit sought to challenge the SEC’s authority to regulate digital assets and argued that the agency should not be able to unilaterally expand its jurisdiction without proper oversight and approval.