The Crypto Freedom Association of Texas (CFAT), which includes companies such as Coinbase, Andreessen Horowitz, Ledger, Paradigm and Blockchain Capital, filed a lawsuit against the SEC. Apart from these large companies, there are also relatively smaller companies in the group, such as Lejilex, a Texas-based crypto company.

“What the SEC does is not in the law.”

In the official statement made by the association called CFAT, it was stated that the SEC was trying to enforce the rules with the threat of sanctions and the following statements were used:

“The SEC; The accusations, which have no equivalent in the law, cannot be predicted in advance, and are not full of substance, have caused companies such as Lejilex to constantly fear being sued by the institution. The SEC interprets the Howey test, which it references for investment contracts, very broadly.”

“Will Nike sneakers also be an investment contract?”

The group also gave an interesting example and said:

“Let’s think about the limited edition products of Nike sneakers. What happens if a person buys these shoes with the aim of selling them at a higher price later and in the meantime expects more advertising from Nike company? Does this make shoes an investment contract? Are secondary sales considered investment contract sales? Or is the place where the shoes are sold considered an unregistered investment contract exchange?

While the case only covers the state of Texas, Mike Wawszczak, founder of the Lejilex exchange operating here, said, “Instead of filing this case for fear of being taken to court, we would prefer to do our own business.”

Last night, the Kraken exchange took a step on the same issue and requested a court in California to drop the lawsuit filed against them by the SEC.

The SEC filed unregistered investment contract lawsuits against many platforms and companies, from Kraken to Coinbase. Most of these cases came in 2023.

It was published:

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