- The SEC removes the call, marking a change in cryptographic regulation strategy.
- The Texas Court ruled on the overvalued dry with a cryptographic broker rule.
- Industry groups celebrate while the SEC moves to a more collaborative position.
The American Securities and Exchange (SEC) commission abandoned its appeal from a decision by the Texas Federal Court which blocked its controversial broker rule.
Sec remove the call from the crypto rule
The “broker” rule aimed to extend SEC surveillance to decentralized financing platforms, liquidity suppliers and automated market manufacturers with more than $ 50 million in capital. The decision marks a change in the regulatory approach to the dry under a new leadership.
This decision caused reactions of industry leaders and regulatory observers. Kristin Smith, CEO of the Blockchain Association, said that the removal of the call marks a turning point for the dry. It criticized the rule as an illegal expansion of dry power, which would have created unnecessary obstacles of conformity.
Broker rule
The SEC initially sought to redefine the scope of its jurisdiction on crypto operations and to classify a wide range of entities as “dealers” subject to strict recording requirements. A Federal Judge of Texas ruled that the SEC had exceeded its statutory authority in the proposal for such a broad interpretation. The court concluded that the SEC rule was disconnected from existing American securities laws.
The Blockchain Association and the Crypto Freedom Alliance of Texas have challenged the rule, arguing that it would impose a burden on decentralized funding protocols. These platforms lack central operators and it would be difficult to meet the requirements such as knowing your customer (KYC) and anti-flange (AML) policies. The rejection of the call was welcomed by these groups as a victory for cryptographic industry.
Dry shifts in regulatory position
The retirement of the dry of this call reflects a broader change in its approach to the regulation of cryptocurrencies. Under the direction of interim president Mark Uyeda, the SEC has reassessed its legal strategies in the management of cryptographic space. This decision indicates the agency’s intention to adopt a more measured and collaborative approach rather than aggressive litigation tactics.
In addition, the Commission also interrupted implementing measures in eminent cryptographic cases such as its dispute with Binance. The dry seems to have opted for the “outside the courtroom” settlement of these questions. This indicates a departure from the strict approach adopted by former president Gary Gensler.
SEC retirement could encourage the Commission to reconsider its regulatory approach to digital assets. The results of the appeal may have broader implications for the future of cryptographic regulations in the United States.
