The United States Securities and Exchange Commission has withdrawn its appeal against a decision by a federal court in Texas who has brought down his rule about broker dealer who wanted to expand the supervision of the agency.
The committee appealed against the decision after the American district judge rode O’Connor of the Northern district of Texas that the SEC “had surpassed its legal authority” with the rule.
The policy, completed for the first time in February 2024, wanted decentralized financial platforms, liquidity providers and automated market makers with more than $ 50 million in capital as dealers, which means they are subject to registration requirements.
O’Connor ruled that the approach of the SEC was ‘unbound’ of the American securities legislation, which opted for industrial groups that challenged the regulation.
The Blockchain Association and the Crypto Freedom Alliance of Texas claimed that the rule would impose unworkable compliance tax on Defi-Protocols, which are not central operators who are able to maintain, know your customer and anti-money laundering requirements.
On February 19, the sec A notification submitted With the Fifth Circuit Court of Appeals, which stated that “to voluntarily reject this profession”, which ended the legal dispute.
Kristin Smith, CEO of the Blockchain Association, welcomed the decision of the SEC and described it as a turning point for the desk after the regulatory performance of former chairman Gary Genler against Crypto.
She characterized the SEC rule of the broker dealer as an “illegal grip” who tried to define the legal authority of the agency without the correct justification.
The retreat of the SEC on the broker dealer rule is just the newest sign of changing tides in the approach of Crypto van Washington. With Gensler from view, the agency has undergone an important course correction under new leadership.
President Donald Trump wasted no time to shake things up and concentrate the sec again at aggressive crypto performance. Acting chairman Mark Uyeda has since sent the agency to a more measured approach, whereby the process efforts are called back that defined Gensler’s term of office.
And the broker dealer rule is not the only enforcement point that gets the cold shoulder-different controversial cases against prominent crypto companies such as Binance and Coinbase have now been put on a break.
