We are honored to join Kentucky, Nebraska, and 16 other States, in a lawsuit against the SEC to clarify the law related to digital assets and prevent the SEC from “continuing its unlawful campaign of regulatory overreach” in crypto. 🧵

We are honored to join Kentucky, Nebraska, and 16 other States, in a lawsuit against the SEC to clarify the law related to digital assets and prevent the SEC from “continuing its unlawful campaign of regulatory overreach” in crypto. 🧵

https://www.defieducationfund.org/_files/ugd/84ba66_02733b093d6e43b79dc222f9f7777f08.pdf

We do policy and advocacy work to help DeFi flourish. 

Looking to donate? 
https://www.defieducationfund.org/supportus

3/ The complaint also asks the Court to issue an order stopping the SEC “from bringing enforcement actions premised on the failure of digital asset platforms facilitating such secondary transactions to register”

4/ DeFi and crypto broadly will make the digital economy more accessible, efficient, interoperable, dependable, and consumer-focused.

The SEC currently stands as a barrier to realizing this promise.

end/ Lastly, we are incredibly grateful to Kentucky, Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, and Florida that brought this action and appreciate the court’s consideration.

We will continue to update the community on this case so be sure to be following DEF 🫡

2/ The complaint asks the Court to declare:

- that a “digital asset transaction is not an investment contract” under the securities laws “if it does not transfer any stake in any enterprise that the seller or anyone else has an obligation to manage for the asset owner’s benefit and share resulting profits”;

- that digital asset platforms that facilitate secondary tx that lack those characteristics need not register as securities exchanges, dealers, brokers, or clearing agencies;

- that the SEC violated the Administrative Procedure Act by adopting a policy that secondary tx in common digital assets are uniformly “investment contracts,” and platforms that facilitate such tx are securities exchanges, broker-dealers, and clearing agencies subject to registration requirements; and

- that the SEC’s refusal to promulgate that policy through notice-and-comment rulemaking violated the APA.