{"id":36996,"date":"2025-02-20T19:00:28","date_gmt":"2025-02-20T16:00:28","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=36996"},"modified":"2025-02-20T17:56:54","modified_gmt":"2025-02-20T14:56:54","slug":"sec-withdraws-defi-dealer-appeal","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/sec-withdraws-defi-dealer-appeal\/","title":{"rendered":"SEC Withdraws Lawsuit on DeFi Dealer Rule!"},"content":{"rendered":"

SEC<\/strong> withdraws appeal in case to classify DeFi projects<\/strong> <\/a>as securities dealers. Is crypto regulation shifting?<\/p>\n

SEC Withdraws Appeal on DeFi Projects as Securities Dealers<\/h2>\n

The Securities and Exchange Commission (SEC)<\/strong> has withdrawn its appeal in a case that would have required decentralized finance (DeFi) projects to register as securities dealers.<\/p>\n

On February 19, 2025, the agency filed a four-page motion with the U.S. Court of Appeals for the Fifth Circuit<\/strong>, voluntarily dismissing the appeal without opposition from other parties.<\/p>\n

The case began when the SEC sought to expand the definition of “dealer” to include DeFi protocols<\/strong>, which would have forced these projects to register with the SEC as securities exchanges and brokers. A federal judge in Texas ruled that the SEC had overstepped its authority by attempting to treat DeFi<\/strong> traders the same as traditional financial brokers.<\/p>\n

\"defi\"<\/p>\n

The Blockchain Association and the Texas Crypto Freedom Alliance<\/strong> filed the lawsuit, arguing that the SEC’s amended rules violated the Administrative Procedures Act (APA).<\/strong> U.S. District Judge Reed O’Connor found their arguments compelling enough to order the SEC to remove the crypto-related changes without a trial.<\/p>\n

The withdrawal comes as part of broader changes under new leadership at the SEC. Following Gary Gensler\u2019s departure, Acting SEC Chair Mark Uyeda<\/strong> has taken steps to engage more closely with the crypto industry. One of his first actions was to create a crypto-focused task force led by Commissioner Hester Peirce.<\/p>\n

The SEC’s withdrawal of its appeal signals a shift in its regulatory approach toward DeFi projects. The SEC had previously sought to subject DeFi projects to the same regulations as traditional financial brokers, but a federal judge in Texas rejected this move.<\/p>\n

This decision reflects the SEC\u2019s efforts to develop more flexible and clearer regulations under its new leadership. Known as “Crypto Mom,” Commissioner Hester Peirce<\/strong> is focusing on providing clearer guidelines for the crypto industry. The change provides temporary clarity for DeFi projects while the SEC works on new rules.<\/p>\n

\n

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0Telegram,\u00a0<\/strong><\/a>YouTube<\/strong><\/a>,\u00a0and\u00a0Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

SEC withdraws appeal in case to classify DeFi projects as securities dealers. Is crypto regulation shifting? SEC Withdraws Appeal on DeFi Projects as Securities Dealers The Securities and Exchange Commission (SEC) has withdrawn its appeal in a case that would have required decentralized finance (DeFi) projects to register as securities dealers. On February 19, 2025,<\/p>\n","protected":false},"author":29,"featured_media":36997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[11988,3790,11987,11985,11986],"class_list":["post-36996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-administrative-procedures-act-apa","tag-defi-protocols","tag-the-blockchain-association-and-the-texas-crypto-freedom-alliance","tag-the-securities-and-exchange-commission-sec","tag-u-s-court-of-appeals-for-the-fifth-circuit"],"yoast_head":"\nSEC Withdraws Lawsuit on DeFi Dealer Rule! - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/sec-withdraws-defi-dealer-appeal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Withdraws Lawsuit on DeFi Dealer Rule! - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"SEC withdraws appeal in case to classify DeFi projects as securities dealers. 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