SEC Withdraws Controversial Dealer Rule Following Texas Court Ruling – BitRss

The U.S. Securities and Exchange Commission (SEC), under temporary chair Mark Uyeda, has withdrawn its appeal concerning the dealer rule it aimed to implement. A Texas court ruling had previously determined that the rule operates independently of existing laws, effectively blocking its enforcement.

Details of the Rule and Criticisms

The dealer rule, which the SEC intended to enforce, sought to broaden its definition to include high-frequency trading firms and certain cryptocurrency asset funds. Various industry groups expressed concerns that the rule intended to indirectly regulate crypto trading platforms without congressional approval. This situation supported claims that the rule exceeded the current legal framework.

Court Ruling and Developments

The Texas court invalidated the rule, stating that it overstepped the SEC’s authority. After an initial appeal, the SEC ultimately withdrew its challenge, preventing the rule from coming into effect. The implications of this ruling have been interpreted as signaling a shift in regulatory strategy within the sector.

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