Crypto Groups Add Basis for Nixing SEC Dealer Rule, Court Says

Crypto advocacy groups are correct that the SEC’s reinterpretation of the term “dealer” mischaracterizes the business of dealing, according to a federal court that invalidated the rule in a separate case.

The commission exceeded its authority in issuing new rules expanding the definition of a dealer under the Securities Exchange Act, Judge Reed O’Connor said Thursday in a case brought by hedge funds. The parallel case brought by the cryptocurrency groups merits the same conclusion, he said in a separate ruling the same day in the US District Court for the Northern District of Texas.

The Crypto Freedom Alliance of ...