Crypto lobby groups sue SEC

Two crypto lobbying groups, the Blockchain Association and the Texas Crypto Freedom Alliance, filed a lawsuit against the SEC. The lawsuit was filed today in the Northern District Court of Texas.

According to the news in the US media Wall Street Journal; The two groups that filed the lawsuit stated that the SEC’s latest definition of “intermediary institution-person” includes people who only buy and sell in cryptocurrencies, and that the SEC does not take the feedback on the issue seriously. The two groups also argued that it is a legal requirement for the SEC to conduct the necessary analyses.

The lobbying groups are asking the court to declare the SEC’s rule “arbitrary and unlawful” under the Administrative Procedures Act and to block the SEC from enforcing it:

“This definition would put all types of digital asset market participants in a serious position, including users who only participate in digital asset liquidity pools.”

The groups also stated that the current rule on trading does not include transactions made by the investor on behalf of his own account.

As it is known, the SEC, under the management of Gary Gensler, wants to completely control the cryptocurrency world. Gensler was also an opponent of spot ETFs in this sense. However, he also gave the final approval vote in the 2-to-2 vote of the 5-person SEC board.