tl;dr
Lejilex and CFAT have filed a lawsuit against the US Securities and Exchange Commission (SEC), alleging 'regulatory overreach' and seeking 'clarity on the classification of digital assets.' The lawsuit contends that the SEC's jurisdiction over the cryptocurrency industry lacks a 'clear statutory man...
Lejilex and CFAT have filed a lawsuit against the US Securities and Exchange Commission (SEC), alleging 'regulatory overreach' and seeking 'clarity on the classification of digital assets.' The lawsuit contends that the SEC's jurisdiction over the cryptocurrency industry lacks a 'clear statutory mandate,' prompting concerns about excessive regulation and its impact on innovation. Lejilex seeks legal clarification to ensure that listing pre-existing tokens does not violate securities laws, while CFAT aims to advocate for a more conducive regulatory environment for the cryptocurrency industry. Additionally, seasoned trader Peter Brandt and Ripple's Chief Legal Officer have criticized the SEC's leadership under Gensler.
A Texas-based crypto company, Lejilex, along with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit against the US Securities and Exchange Commission (SEC), alleging ‘regulatory overreach’ and seeking ‘clarity on the classification of digital assets.’ The lawsuit, filed in a federal court in Fort Worth, contends that the SEC’s “jurisdiction over the cryptocurrency industry lacks a “clear statutory mandate,” prompting concerns about excessive regulation and its impact on innovation within the sector. Lejilex, which aims to operate Legit.Exchange, a crypto platform, according to Reuters, asserts that the SEC’s assertion of jurisdiction has created uncertainty for the company to list digital assets, including those previously classified as securities by the SEC in legal actions against prominent exchanges such as Binance and Coinbase. CFAT, a lobbying group representing industry interests, has joined the lawsuit, citing difficulties in advocating for “sensible policies” in Texas due to the SEC’s broad oversight of digital assets.
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