Crypto Industry Sues SEC Over Expanded Dealer Definition

The Blockchain Association and Crypto Freedom Alliance challenge the SEC's new dealer rule, claiming it unlawfully broadens regulatory scope.

The Blockchain Association and Crypto Freedom Alliance filed a lawsuit against the SEC, arguing the new dealer rule extends beyond legal limits.
The rule includes DeFi liquidity providers under securities regulations, which critics say could stifle innovation.
SEC commissioners have voiced concerns about the rule's reach and its potential impact on the crypto industry.
The lawsuit claims the SEC failed to properly address public feedback and conduct required economic analysis.
Industry leaders warn the rule could drive U.S. crypto businesses overseas, harming domestic innovation.