SEC withdraws the appeal in the DEFI trader classification case

The American Securities and Stock Exchange Committee (SEC) withdrew its appeal to the ruling that prevented its attempt to expand the laws of securities to cover decentralized financing (Defi).

This development means that the DEFI space may not be subject to the laws of securities.

Full victory for Defi

On February 19 a movement It was submitted to the American Court of Appeal for the Fifth Chamber, and the Supreme Education Council stated its intention to “reject this appeal voluntarily.” The document also revealed that this step went without opposition.

Last month, the agency resumed November to rule Written by a federal judge in Texas, who prefers encryption trade groups, Blockchain Association and an alliance of freedom coding in Texas.

The decision was prevented from implementing the proposed change to the definition of the agent, which would have been required of all coding liquidity and automated market makers with more than $ 50 million in capital to register in the committee.

The invitation groups opposed the change, on the pretext that it would impose unsuccessful requirements on Defi protocols. These platforms often work without a central salad, which makes it difficult to comply with the customer (KYC) and combating money laundering (AML).

Christine Smith, CEO of Blockchain Association. Stuck About the development on February 19 on X, saying:

“Full and complete victory today in our SEC case on the merchant base. The encryption industry can breathe a sigh of relief.”

The expanded definition of the agent was presented for the first time a year ago. The Financial Supervision Authority has expanded the meaning of including the main trade companies that use the algorithm and high -frequency trading strategies to provide services such as stock exchanges and alternative trading platforms.

Positive transformations in the encryption industry

The head of the encryption pressure group highlighted that with the final separation of the issue and the new leadership in the Supreme Education Council, the industry was looking for fruitful discussions with the agency.

After the departure of Jinsler, US President Donald Trump reformed the Supreme Education Council with a focus on reducing enforcement and litigation related to encryption. In line with this, Trump had previously appointed Mark Oida to lead the committee to be able to represent.

Under Uyeda, the organizer created a coding team headed by Commissioner Hyster Peres to create a framework for digital assets.

The agency was also late or stopped litigation against many encryption companies. Last week, Binance was given a 60 -day stand in its case with SEC to assess organizational developments. In January, Coinbase was also allowed to appeal his legal battle against the International Energy Agency.