Since 1946, in the wake of the New Deal, federal government agencies have had to abide by the constitutional safeguards and processes set forth in the Administrative Procedure Act . The APA is specifically designed to allow for public participation, transparency, and accountability in the agency rulemaking process, and provides the public with a right to challenge in court an agency action that fails to follow the APA’s requirements.
Under this new definition, even with no intermediary and no customer relationship, people who trade digital assets on peer-to-peer trading platforms, and thus provide liquidity, and potentially the software developers of such platforms, would need to abide by SEC dealer registration requirements or could face severe SEC enforcement action.to customers
the SEC’s economic analysis on the rule’s impact on digital asset market participants found the consequences of the rule are too “difficult to predict,” despite receiving dozens of robust comments warning of what those consequences will be.filing one of the suits Yet, the SEC barely acknowledged this feedback, as required by the APA, and instead, finalized the rule with no analysis as to the effect on digital asset markets, no clarity as to which digital asset market participants are implicated, and no explanation as to how participants can comply.