According to the lawsuit filed in Fort Worth District Court, the US Securities and Exchange Commission (SEC) exceeded its authority. The plaintiffs explained: the department persecutes companies working with cryptocurrencies, but does not specify the rules that they must comply with. This ambiguity, the plaintiffs argue, not only hinders the growth of crypto businesses, but also jeopardizes the United States' reputation as an innovator in the innovation sector.
Lejilex plans to create a Legit.Exchange platform for trading cryptocurrencies, so the plaintiffs are trying to get the court to confirm that the digital assets that will be listed on the new exchange and already traded on existing crypto platforms are not securities regulated by the SEC. Lejilex highlighted the lack of clear legislation stating that the SEC has the authority to regulate digital assets.
As such, Lejilex and CFAT are seeking to set a precedent that will allow cryptocurrencies that the SEC has previously designated as securities in lawsuits against major cryptocurrency exchanges Coinbase and Binance to be traded on exchanges without registering those cryptoassets as investment contracts. According to the plaintiffs, the SEC is deliberately expanding the scope of its regulation, especially when classifying digital assets as investment contracts, and this does not have a solid legal basis. Measures taken by the SEC against crypto companies must first be approved by Congress, Lejilex and CFAT insist.
Let us recall that recently SEC Chairman Gary Gensler once again spoke out against cryptocurrencies, saying that Bitcoin is very popular among hackers who use ransomware. According to a recent Coinbase poll, four out of five Californians would vote for a cryptocurrency-friendly presidential candidate who could change the composition of the SEC.
Source: Bits
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