Two U.S. crypto firms sue the SEC over its new “dealer” rules
The Wall Street Journal reported that two crypto industry organizations in the United States sued the Securities and Exchange Commission, questioning the regulator's expanded definition of "traders" in new rules. The Blockchain Association and the Crypto Freedom Alliance of Texas stated that the Securities and Exchange Commission exceeded its authority and approved an arbitrary and capricious rule. The crypto industry organizations stated in the lawsuit that the new rules are vague, broad in scope, and do not explain their impact on participants in the crypto market. Under the new rules, some automated software developers and liquidity providers on certain trading protocols may be considered "traders," and their business will face new costs, including additional capital and registration requirements.
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