SEC voluntarily withdraws appeal of DeFi rulemaking

Odaily News The U.S. Securities and Exchange Commission on Wednesday voluntarily withdrew its appeal of a ruling that blocked the agency from expanding the scope of existing securities laws to cover DeFi users and projects.
The SEC said it wants to "voluntarily dismiss this appeal" in a four-page motion filed with the U.S. Court of Appeals for the Fifth Circuit, a move that was not opposed.
Last November, a federal judge in Texas ruled that the SEC exceeded the regulator’s authority by expanding the legal definition of “dealer.” The judge argued that changes to the SEC’s dealer rule were unlawful because it lumped DeFi traders in with financial brokers.
Kristin Smith, CEO of the Blockchain Association, said in a statement that the SEC's voluntary withdrawal of the appeal was a major victory for the digital asset industry. "We first filed a lawsuit against the SEC to challenge the agency's illegal power grab, which attempted to unilaterally redefine the boundaries of its statutory authority. With the agency's new leadership leading to today's final dismissal, we look forward to a productive dialogue between the industry and the SEC." (Decrypt)