The US Stock Exchange and Securities Commission (SEC) has decided to voluntarily withdraw its appeal in the ongoing lawsuit against the Blockchain Association (BA) and the Crypto Freedom Alliance of Texas (CFAT), marking an important triumph for the crypto sector. This decision represents a significant change in the SEC’s perspective towards the crypto industry and may indicate a new era of more open regulation for the sector.
The SEC had originally introduced an appeal to keep a disposition known as the “Dealer Rule” applicable in the cryptocurrency market. This rule refers to the regulations that dictate how intermediaries that buy and sell financial titles, such as stocks or bonds, on behalf of their clients or for their own accounts, should operate. However, with the withdrawal of the appeal, the SEC ceases its attempts to apply the “Dealer Rule” within the crypto market.
SEC Resigns from Dispute in Court
According to reports, the SEC’s decision implies a change in the optics that the agency has maintained towards regulations regarding the cryptocurrency market. The CEO of the Blockchain Association, Kristin Smith, celebrated the decision and emphasized that the agency, under new direction, could adopt a more open approach to the crypto industry. “It is a new day in the SEC after the crusade of former President Gensler against cryptocurrencies – the agency’s voluntary decision is excellent news,” Smith said. She added that this turn could open the door to a more constructive dialogue between the crypto industry and US regulators, favoring a more positive future for digital assets in the country.
A Controversial Case
The initial demand was filed in April last year in response to the SEC’s attacks on the crypto industry and its attempt to redefine its regulatory authority. This attempt generated strong criticism from sector actors, who considered that the agency was exceeding its faculties. With the withdrawal of the appeal, an important precedent is marked on the limits of regulation around digital assets, laying the bases for a new relationship between the industry and the regulatory body.
The SEC’s decision comes after the agency came under the interim direction of Commissioner Mark Uyeda, a critical voice within the SEC in favor of clear rules for the cryptocurrency sector. After Uyeda’s arrival, the first measures have already been taken to begin regularizing prospects regarding the crypto market, appointing Hester Peirce as director of a new group that will seek to clarify the agency’s approach around the sector.
The SEC has been reviewing several of its ongoing actions, including the temporary cessation of the dispute in court against Binance for a couple of months, while regulatory aspects are clarified in relation to the agency. It remains to be seen if the SEC will take similar measures regarding other cases, such as the ongoing demand against Ripple Labs for the pre-sale of Token XRP years ago, whose verdict was formally appealed before the departure of Gensler from the agency.
Note that this is an informative article, and investments in crypto assets are not regulated in some countries. They may not be appropriate for retail investors, as the total inverted amount could be lost. It’s essential to see your country’s laws before investing.
