SEC sued over crypto regulation authority

Lejilex, a digital asset firm, together with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit towards the U.S. Securities and Trade Fee (SEC) in a Texas courtroom, difficult the SEC’s authority to control digital property.

The swimsuit, filed on Feb. 21, contends that the SEC has overstepped its jurisdiction by treating practically all digital asset transactions as funding contracts below federal securities legal guidelines.

The lawsuit argues that the SEC has not been granted specific authority by Congress to control digital property and that the company’s enforcement actions have been primarily based on an excessively broad interpretation of its powers.

Lejilex, which plans to launch a brand new digital asset buying and selling platform referred to as Legit.Trade, fears potential SEC enforcement actions primarily based on the regulator’s current stance. CFAT, advocating for accountable crypto coverage improvement in Texas, claims the SEC’s present strategy hinders different authorities from correctly regulating digital property.

The criticism, spanning 57 pages, criticizes the SEC for not proposing any rules for public remark that may make clear its regulatory area over digital property.

The plaintiffs are looking for a courtroom ruling to verify that secondary-market gross sales of digital property facilitated by Legit.Trade doesn’t represent securities gross sales. Additionally they need the courtroom to declare that Legit.Trade won’t function as an unregistered securities change, dealer, or clearing company.