- SEC’s attempt to expand the definition of securities dealer was challenged and struck down by the U.S. District Court for the Northern District of Texas
- The SEC, now under new leadership, voluntarily dismissed its appeal of the court’s decision, a move celebrated by the Blockchain Association
- Cryptocurrencies reacted positively to the news, with Bitcoin, Ethereum, and XRP showing notable gains over the last 24 hours
The new age of the Securities and Exchange Commission is promising to be a lot different than its predecessor, during Donald Trump’s time at the White House.
Back on February 6, 2024, the SEC moved to expand the definition of “securities dealer” to encompass all market participants who provide sizeable liquidity to the markets. The motion was later challenged by the Blockchain Association and was finally struck down in November 2024 by the U.S. District Court for the Northern District of Texas.
The Commission appealed the decision, in a legal action that has lived up until this day. Now under a new leadership, the SEC voluntarily chose to dismiss the appeal, according to a recent filing.
Moreover, the decision to voluntarily accept defeat marks not only a huge win for the digital assets market but also reveals a potentially less combative Securities and Exchange Commission.
The CEO of the Blockchain Association Kristin Smith celebrated the news on Twitter, citing it as a “complete and total victory”, and that the industry can now “breathe a sigh of relief”.
Cryptocurrencies were quick to react to the news, with most of them breaking a daily bearish trend. According to CoinMarketCap, Bitcoin, Ethereum, and XRP are up on by 1.44%, 2.43%, and 6.10% over the last 24 hours, respectively.
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