Cryptocurrency lobbyists sue the U.S. SEC over the definition of "dealer."

ChainCatcher news, according to CoinDesk, the Texas Blockchain Association and the Cryptocurrency Freedom Alliance have filed a lawsuit, claiming that the U.S. Securities and Exchange Commission's expansion of the definition of "dealer" to encompass digital asset activities is excessive. The lawsuit claims that the expanded definition of dealer will cover those who are merely trading digital assets. The lawsuit states that the SEC did not consider the feedback received during the public comment period for the rule and did not conduct the "statutorily required economic analysis." The lawsuit requests the court to declare the rule "arbitrary, capricious, or otherwise not in accordance with law" under the Administrative Procedure Act and to prevent the SEC from enforcing the rule.

Previously, the SEC approved the expanded definition of "dealer" in February by a vote of 3 to 2, describing it as "a functional analysis based on the individual’s securities trading activities rather than the type of securities being traded."