Crypto startup Lejilex and the US Securities and
Trade Fee (SEC) are engaged in a authorized battle over the classification
of cryptocurrencies. Each events have submitted competing briefs for abstract
judgment in a Texas federal court docket.
Lejilex, which is a part of the Crypto Freedom Alliance of
Texas, filed its temporary on October 3. The corporate argues that it intends to
facilitate crypto transactions and to not promote securities. In its submitting,
Lejilex accuses the SEC of overstepping its regulatory authority.
SEC Defends Stance on Securities
In its temporary, Lejilex contends that the SEC seeks to broadly
classify asset gross sales as safety transactions. The corporate claims that the SEC
has maintained an method that enables for a “transformative
enlargement” of its regulatory energy with none limitations.
Conversely, the SEC argues that the lawsuit makes an attempt to
persuade the court docket that cryptocurrencies ought to by no means be thought-about securities.
The SEC has additionally raised the difficulty of standing, asserting that Lejilex has not
confronted any company enforcement actions in opposition to it.
Earlier this 12 months, in February, Lejilex requested the court docket
to find out that itemizing pre-existing tokens wouldn’t violate securities
legal guidelines. Co-founder Mike Wawszczak expressed frustration, stating: “We want we
had been launching our enterprise as an alternative of submitting a lawsuit, however right here we’re,” in
an interview with Reuters.
Crypto startup Lejilex has requested a Texas federal court docket for a preemptive ruling in opposition to SEC enforcement actions, claiming it facilitates crypto transactions, not securities, and accusing the company of regulatory overreach.
— The Crypto Information 🗞️ (@TCNCRYPTO) October 4, 2024
Coinbase’s Authorized Battle Continues
On October 4, Coinbase Chief Authorized Officer Paul Grewal
commented on the briefs in a publish on X (previously Twitter). He criticized the SEC’s stance, arguing
that the classification of a digital asset transaction shouldn’t depend upon the
asset’s nature.
Grewal highlighted inconsistencies within the SEC’s arguments,
referencing a earlier case the place the SEC took a contradictory place.
Coinbase is at present concerned in a lawsuit with the SEC, which claims the
alternate bought unregistered securities, a cost Coinbase denies.
Grewal emphasised the significance of consistency in
authorities actions, stating: “That is our authorities appearing within the identify of all
of us. Telling one decide one factor whereas telling one other the alternative ought to
not be tolerated. We deserve higher.”
This text was written by Tareq Sikder at www.financemagnates.com.
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