U.S. cryptocurrency industry group sues SEC over new rules expanding definition of “securities dealer”

According to BlockBeats, on April 23, the Blockchain Association, a US cryptocurrency industry organization, announced that it had filed a lawsuit against the US Securities and Exchange Commission (SEC) over the newly promulgated "Dealer Rule". The Blockchain Association and the Texas Crypto Freedom Alliance (CFAT) filed a lawsuit in the Northern District Court of Texas, requesting the court to order the revocation of the SEC's new rules. In February of this year, the SEC passed new rules to expand the definition of "dealers" to participants who provide liquidity for DeFi protocols, essentially requiring liquidity providers on decentralized finance (DeFi) protocols to comply with the relevant requirements of securities dealers in traditional financial markets. The Blockchain Association pointed out that the SEC ignored the objections submitted by the industry during the previous comment period and ignored its doubts about "exceeding statutory authority". It insisted on promulgating this "unworkable rule", which will seriously hinder the innovation of the digital asset ecosystem. Kristin Smith, CEO of the Blockchain Association, said that the new rules are another example of the SEC's attempt to illegally regulate and hinder the development of digital assets. The SEC has ignored its legal obligations and numerous concerns and objections and has gone its own way. This anti-digital asset "dealer rule" will force American companies to move overseas and panic American innovators. The Blockchain Association believes that the SEC's move violates the Administrative Procedure Act and illegally expands its statutory authority. The lawsuit asks the court to rule that the SEC's new rules are invalid.