The U.S. Securities and Exchange Commission has withdrawn its appeal on the dealer rule following a Texas court ruling.
Details of the Rule and Criticisms
The dealer rule intended to broaden its definition to include high-frequency trading firms and certain cryptocurrency asset funds. Various industry groups raised concerns about indirect regulation of crypto trading platforms without congressional approval.
Court Ruling and Developments
The Texas court invalidated the rule, stating it exceeded SEC’s authority. After an initial appeal, the SEC eventually withdrew its challenge, preventing the rule from taking effect. This development signals a shift in regulatory strategy within the sector.
Implications for the Crypto Industry
The recent developments highlight a comprehensive evaluation process regarding regulatory discussions in the cryptocurrency asset sector. Organizations in the sector and regulatory bodies are shifting focus toward negotiations and constructive solutions.
The recent decision by the SEC highlights the need to review regulatory policies and steps in line with industry needs.
