{"id":3153,"date":"2024-11-22T18:03:36","date_gmt":"2024-11-22T18:03:36","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=3153"},"modified":"2024-11-22T18:03:36","modified_gmt":"2024-11-22T18:03:36","slug":"court-says-no-sec-loses-battle-over-crypto-broker-regulation","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=3153","title":{"rendered":"Court Says No: SEC Loses Battle Over Crypto Broker Regulation"},"content":{"rendered":"
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In recent months, the Securities and Exchange Commission (SEC) under Gary Gensler has been under fire over its \u201cregulation-by-enforcement\u201d policy, and many are looking for clarity in crypto<\/a> rules.<\/p>\n

Today, the crypto industry moved a few steps into clarity when a Texan federal judge tossed the agency\u2019s broker-dealer rule<\/a>. By SEC\u2019s proposed definition, the term \u201cdealer\u201d includes all liquidity providers and market makers that hold over $50 million in capital.<\/p>\n

According to Texas Judge Reed O\u2019Connor, the agency has overstepped its authority by adopting a broad definition of a \u201cdealer\u201d unrelated to the Exchange Act\u2019s text, structure, and spirit.<\/p>\n

The crypto community has lauded this legal win, with Marisa Tashman Coppel of the Blockchain Association calling it a massive win for the growing industry.<\/p>\n

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DEALER RULE STRUCK DOWN! SEC exceeded its statutory authority. HUGE win for the entire industry @BlockchainAssn<\/a> and @CryptoFreedomTX<\/a> !!! pic.twitter.com\/Zv1Mhv1uwl<\/a><\/p>\n

\u2014 Marisa Tashman Coppel (@MTCoppel) November 21, 2024<\/a><\/p>\n<\/blockquote>\n

SEC Offers An Expanded Broker-Dealer Definition<\/h2>\n

On February 6th, 2024, the SEC adopted new rules for market participants and updated the definition of the broker\/dealer. Under the agency\u2019s revised rules, market participants with over $50 million in capital must register as dealers or securities dealers.<\/p>\n

At the time of the rules\u2019 publication, over 40 market participants must register and be subject to the broker\u2019s definition and regulations.<\/p>\n

<\/p>\n

According to critics and observers, the SEC has overstepped its authority and has created unrealistic requirements. For example, critics have hit the agency for enforcing the Know Your Customer (KYC) protocol, even on decentralized platforms with no central operators.<\/p>\n

An Abuse Of Authority, Judge Says<\/h2>\n

O\u2019Connor ruled that the agency had abused its authority. The district court judge further explained that the SEC\u2019s proposed dealer rules are \u201cuntethered\u201d from the country\u2019s securities laws.<\/p>\n

Critics filed their complaints<\/a> in court after the SEC formally updated the definitions last February 2024. The Crypto Freedom Alliance and the Blockchain Association are two organizations that initiated the complaint against the agency.<\/p>\n

\"\"<\/p>\n

Uncertain Times For SEC<\/p>\n

The SEC faces uncertain times, especially now that Chairman Gary Gensler has already announced his intention to resign<\/a>. In a Twitter\/X post dated November 22nd, Gensler shared that he will step down on January 20th, 2025. With Gensler\u2019s resignation and legal challenges, the SEC\u2019s crypto approach remains uncertain.<\/p>\n

\n

On January 20, 2025 I will be stepping down as @SECGov<\/a> Chair.<\/p>\n

A thread \"\ud83e\uddf5\"\"\u2b07\"<\/p>\n

\u2014 Gary Gensler (@GaryGensler) November 21, 2024<\/a><\/p>\n<\/blockquote>\n

O\u2019Connor\u2019s ruling is the latest challenge and setback for the SEC. While the agency can still appeal this ruling in the 5th Circuit Court of Appeals, the decision is a big blow. Crypto support has scored a win over the clarification of the dealer\u2019s definition, and with incoming US President Donald Trump at the helm, the industry can expect friendlier policies soon.<\/p>\n

Featured image from DALL-E, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In recent months, the Securities and Exchange Commission (SEC) under Gary Gensler has been under fire over its \u201cregulation-by-enforcement\u201d policy, and many are looking for clarity in crypto rules. Today, the crypto industry moved a few steps into clarity when a Texan federal judge tossed the agency\u2019s broker-dealer rule. By SEC\u2019s proposed definition, the term […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-3153","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3153"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/3153\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}