Summary
TLDR: The Blockchain Association sued the SEC for expanding the definition of “dealer” to include DeFi projects, arguing it is an overreach and harmful to the industry. The lawsuit seeks a federal court judgment that the SEC violated the Administrative Procedures Act. This is part of a trend of proactive legal action against the SEC by crypto industry groups.
Key Points
1. The Blockchain Association sued the SEC for expanding the definition of “dealer” to include DeFi users and projects, arguing that traditional financial rules do not apply to the innovative new technology of the digital assets industry.
2. Crypto groups criticized the SEC’s rule change, with Commissioner Hester Peirce condemning it as harmful to market participants and the broader market, leading to the Blockchain Association seeking a declaratory judgment that the SEC violated the Administrative Procedures Act.
3. The lawsuit against the SEC reflects a change in strategy for crypto companies dealing with hostile government entities, with the industry taking an offensive approach and preemptively targeting the SEC through legal actions.