SEC Voluntarily Dismisses Appeal in Landmark Crypto Rulemaking Case
The Securities and Exchange Commission (SEC) has voluntarily dismissed its appeal in its controversial “Dealer Rules.” The SEC’s decision comes after the Blockchain Association challenged the rule, which it represents arbitrary and capricious rulemaking that could undermine the emerging crypto sector.
SEC documents published today, It is noted that it is withdrawing the appeal under federal appeals process 42(b). Both parties agree that each party will bear its own costs and that the plaintiffs, including the Blockchain Association, do not object to the motion. The SEC initially appealed the District Court’s ruling since November 2024, which favored the plaintiffs and criticized the agency’s rules as excessive.
The rules discussed have attracted the attention of the entire cryptocurrency industry because it has the potential to stifle innovation and undermine the growth of digital assets by imposing unnecessary regulations on digital asset dealers. The Blockchain Association argued that the SEC’s actions were harmful to the industry, claiming that the agency’s position constituted an unreasonable over-regulation.
The SEC’s motion to dismissal today marks the conclusion of a long legal battle and policy shifts within the agency. The decision was not only a victory for the Blockchain Association, but also for innovators, entrepreneurs, and developers working in the blockchain and cryptocurrency sectors.
After the announcement, the Blockchain Association praised the firing as a “complete victory.” “Today, our lawsuit against SEC over dealer domination marks a complete victory for us and the wider industry. We first challenged SEC’s dealer domination last April, believing that The misleading attacks on the industry by the SEC constitute arbitrary and capricious rulemaking.”
The association celebrates the ruling as a victory for the digital asset industry, highlighting the importance of maintaining innovation and cultivating a regulatory environment that supports the growth of new technologies.
