SEC Takes a Hit in Crypto Lawsuit Over 'Dealer' Definition

So, the U.S. District Court in Texas just told the SEC to ditch its "dealer" rule that they wrapped up back in February. Industry groups weren’t having it and took the SEC to court, claiming they were overstepping into the crypto space. This ruling came out right when SEC Chair Gary Gensler was announcing he's stepping down, while he was busy bragging about the SEC's wins against crypto. The court has pushed back against the SEC's attempt to broaden the definition of a securities dealer to include more firms, especially those in crypto. This is a big loss for Gensler as it adds to his not-so-great crypto legacy, especially since it happened the same day he said he'd be leaving in January. After a lawsuit from the Blockchain Association and the Crypto Freedom Alliance of Texas, the judge in Texas delivered a pretty harsh verdict for the SEC on Thursday, saying they went too far with their legal authority. The court's ruling made it clear that the SEC's broad dealer definition is disconnected from the actual law and its intended purpose. So, what do you all think? Are we gonna see more companies taking legal action against the SEC now?

Any crypto firm that has been oppressed by the SEC with lawsuits that they consider the outcome of their case to be unfair and unjust now is the time to sue the SEC since the major head, Gary Gensler, who was pressuring against them, is now set to step down, and there is already speculation that the new SEC chairman will be crypto-friendly. Now will be the best time to revisit their cases.

SEC Chairman Gary Gensler’s days are over and his position will soon be handed over to a new president in the Trump administration, so I don’t expect companies to waste their time pursuing a man who is no longer influential. They could have done that and pursued Gensler for overreach had he not decided to step down before Trump took office, but in any case, the judge’s ruling “criticizing the SEC for overextending its jurisdiction” will be beneficial to companies in the future.

So what happens to all of the crypto firms that got Wells notices from the SEC, such as Coinbase?