cryptojournalist
A U.S. court just shut down an SEC rule that tried to expand who qualifies as a “broker.” The rule would have included anyone managing over $50 million, like liquidity providers and automated market makers. Judge Reed O’Connor said the SEC went too far and ignored what the law actually says.
A Win for the Crypto Industry
Crypto advocates are calling this a major victory. Marisa Tashman Coppel from the Blockchain Association said it’s a “huge win.” But the SEC could still appeal to try bringing the rule back.
What Was the Problem?
Back in February 2024, the SEC introduced a rule that would have forced decentralized crypto platforms to follow strict KYC and AML rules. Critics said this was impossible because decentralized networks don’t have a central authority to enforce these rules.
Even SEC Officials Pushed Back
The rule didn’t just upset crypto companies. SEC Commissioner Mark Uyeda warned it gave the agency “limitless” power, and Commissioner Hester Peirce, nicknamed “Crypto Mom,” said it unfairly targeted decentralized systems and went beyond the SEC’s authority.
Crypto Advocates Fought Back
In April, groups like the Blockchain Association sued the SEC, accusing it of hurting innovation and overreaching. Now, their fight has paid off with this legal win.
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