Texas crypto firm challenges SEC, demand clarity on digital asset rules
Texas crypto firm sues SEC, demands clear digital asset rules amid regulatory battle
A Texas cryptocurrency firm, Lejilex, and the Crypto Freedom Alliance of Texas (CFAT), are suing the US Securities and Exchange Commission (SEC), accusing it of overstepping its bounds. The lawsuit, launched in Fort Worth federal court, argues the SEC lacks clear authority over cryptocurrencies, stifling innovation. Lejilex seeks to clarify the rules for listing digital currencies on its proposed platform. The firm points to the SEC's past actions against big exchanges as the source of confusion over what is considered a security.
CFAT, which includes heavyweights like Coinbase and the a16z crypto fund from Andreessen Horowitz, supports the lawsuit. They claim the SEC's wide-reaching control hampers their push for fair regulations in Texas. They argue that digital assets shouldn't be seen as "investment contracts" due to the lack of ongoing obligations between creators and buyers. The lawsuit aims to limit the SEC's reach by invoking the "major questions doctrine," suggesting some SEC actions require clear Congressional approval due to their significant impact.
Criticism of SEC Chairman Gensler is not new. Peter Brandt, a veteran trader, and Stuart Alderoty, Ripple's CLO, have openly criticized Gensler's leadership, accusing him of neglecting investor interests and overusing his power.
