SEC Withdraws Dealer Rule Appeal

SEC Withdraws Appeal Over Dealer Rule Expansion

• The SEC, led by acting chair Mark Uyeda, withdrew its appeal against a Texas court ruling.
• The court had struck down the SEC’s dealer rule expansion as exceeding its authority.
• The lawsuit was initiated by the Blockchain Association and the Crypto Freedom Alliance of Texas in April 2024.
• The dealer rule aimed to include high-frequency trading firms and crypto hedge funds under its definition.
• Blockchain Association CEO Kristin Smith welcomed the SEC’s decision to dismiss the appeal.

The SEC’s withdrawal of its appeal ensures that the contested dealer rule will not be implemented, marking a significant win for industry groups challenging regulatory overreach.