Blockchain Association and Crypto Freedom Alliance of Texas challenge SEC: Battle for the future of digital assets

Blockchain Association and Crypto Freedom Alliance of Texas Sue SEC

Blockchain Association (BA) and Crypto Freedom Alliance of Texas (CFAT) have taken legal action against the Securities and Exchange Commission (SEC) in the Northern District of Texas, questioning their actions towards the American digital asset sector. These organizations are challenging SEC’s arbitrary rulemaking and demanding fairness in the regulation process of digital assets.

Allegations Against SEC

BA and CFAT have requested a court order to reject the Dealer Rule by SEC, arguing violations of the Administrative Procedure Act (APA) by the Commission. The allegations also include the unlawful expansion of the interpretation of the term “dealer” imposed under the Securities Exchange Act of 1934.

Criticism of SEC’s Actions

The CEO of Blockchain Association, Kristin Smith, strongly criticizes SEC’s actions, accusing the Commission of attempting to regulate unlawfully beyond its scope of authority. Smith claims that SEC has neglected legal duties and disregarded numerous comments during consultations, which conflicts with the principles of clarity and transparency in rulemaking.

CFAT’s Action Objective

The Crypto Freedom Alliance of Texas (CFAT) is a non-profit organization characterized by a commitment to the proper development of policies regarding digital assets in Texas. Their main goal is to support innovation while ensuring consumer protection.

Defending the American Digital Asset Ecosystem

BA and CFAT are staunch defenders of the American digital asset sector. Both organizations are fighting against the anti-innovation approach of the SEC and attempts to redefine regulatory competencies. Members of CFAT, including companies such as Coinbase and a16z Crypto, believe that blockchain technology is crucial for the future of the internet, and Texas stands to gain significantly by becoming a leader in shaping policies regarding digital assets.