Sec removes the call in the case of classification of dealers DEFI

The American Securities and Exchange (SEC) Commission has readily withdrawn from a decision that blocked its attempt to broaden the securities laws to cover decentralized finances (DEFI).

This evolution means that the DEFI space can no longer be subject to securities laws.

A complete victory for Defi

In a request of February 19 filed with the American Court of Appeal for the fifth circuit, the SEC declared its intention to “voluntarily reject this appeal”. The document also revealed that the move was without opposition.

Last month, the agency appealed a decision in November by a Federal Judge of Texas who favored the Crypto trade groups, the Blockchain Association and the Crypto Freedom Alliance of Texas.

The decision had prevented the dry from implementing a proposed modification to the definition of a concessionaire, which would have required all crypto liquidity suppliers and automated market manufacturers with more than $ 50 million in capital for S ‘ Register with the Commission.

Crypto advocacy groups have opposed the change, arguing that it would impose inapplicable requirements on the DEFI protocols. These platforms often operate without centralized authority, which makes respect for regulations on your customer (KYC) and anti-flow (AML) customers.

The CEO of the Association Blockchain, Kristin Smith, commented development in an article on February 19 on X, declaring:

“Complete and total victory today in our case against the dry on the dealer’s rule. The cryptography industry can push a sigh of relief. »»

The extended definition of a dealer was presented for the first time a year ago. The financial guard dog had expanded the meaning to include main trade companies that use algorithmic and high frequency negotiation strategies to provide services such as alternative trading scholarships and trading platforms.

Positive changes in the cryptography industry

The Crypto Lobbying Group leader stressed that with the final rejection of the case and a new dry leadership, the industry was looking forward to productive discussions with the agency.

After the departure of peopleler, American president Donald Trump revised the dry by emphasizing the reduction of the application and disputes related to the crypto. In accordance with this, Trump previously appointed Mark Uyeda to lead the committee as an actor.

Under the direction of Uyeda, the regulator created a crypto working group led by Commissioner Hester Peirce to establish a framework for digital assets.

The agency also delayed or interrupted disputes against several cryptographic companies. Last week, Binance obtained a 60 -day break in his case with the dry to assess regulatory developments. In January, Coinbase was also authorized to request an appeal in his legal battle against the guard dog.