SEC Backs Off Crypto Dealer Fight, Continues Resetting Industry Approach

The SEC has dropped its appeal in a lawsuit it was losing against the Blockchain Association and Crypto Freedom Alliance of Texas. A Texas judge had previously ruled that the SEC overstepped its authority with a rule that broadened the definition of securities dealers to encompass many digital asset operations. This rule, implemented under former SEC chair Gary Gensler, was challenged by the crypto industry, who argued it unfairly targeted DeFi and crypto traders not providing dealer services. This withdrawal represents a shift in the SEC's approach to crypto regulation under new leadership. Acting chairman Mark Uyeda, and likely his successor Paul Atkins, are revising the agency's staff and legal strategy regarding crypto. This follows another recent move by the SEC to pause its enforcement action against Binance.