The U.S. District Court for the Northern District of Texas ruled against the Securities and Exchange Commission (SEC), ordering the agency to discard its expanded definition of a 'dealer' which sought to include a broader range of firms, including those in the cryptocurrency sector. This decision comes on the heels of SEC Chair Gary Gensler's resignation and underscores a significant legal setback for the agency. The ruling was in response to a lawsuit from the Blockchain Association and the Crypto Freedom Alliance of Texas, who argued that the SEC was overreaching its statutory authority. The court concluded that the SEC's definition was excessively broad and violated the legal framework established by the Exchange Act. Following the ruling, the Blockchain Association characterized it as a victory for the entire crypto industry, calling out the SEC's attempt to redefine its authority as hostile and unlawful. An SEC spokesman indicated a review of the decision is underway to contemplate future actions.

Source 🔗