A U.S. Securities and Exchange Commission rule expanding the definition of a"dealer" to capture digital assets activity has gone too far, a lawsuit by the Blockchain Association and Crypto Freedom Alliance of Texas alleged., claims that the expanded definition of a dealer would also capture people who are just trading in digital assets.
“Because of the rule’s, exclusive focus on post hoc effects of trading, the new definition of ‘dealer’ will potentially sweep in all manner of digital asset markets participants, including users who merely participate in digital asset liquidity pools,” the suit said. “The Dealer Rule advances the SEC’s anti-digital asset crusade and unlawfully redefines the boundaries of its statutory authority granted to it by Congress, threatening to drive U.S. companies offshore and incite fear in American innovators," the statement said.