Crypto Scores Crucial Court Win Against SEC as Gensler Calls It Quits

A federal judge in Texas dealt a decisive blow to the U.S. Securities and Exchange Commission’s crypto policy on Thursday, ruling that the agency’s expansion of an existing securities law to apply to decentralized finance (DeFi) users and projects was unlawful and in excess of the regulator’s authority. Judge Reed O’Connor DeFi is a catch-all term that describes non-custodial crypto applications on networks such as Ethereum and Solana that allow for traders to buy, sell, loan, and borrow crypto assets without third-party intermediaries, such as banks. The SEC’s interpretation of the dealer rule would have required DeFi projects and users to register as securities exchanges and brokers—the same standards applied to stock exchanges and Wall Street traders. Judge O’Connor determined today not just that the Blockchain Association’s lawsuit had merits—but that its argument was so compelling that the issue could be settled without proceeding to a trial.The SEC must vacate and set aside the crypto-related “The Rule as it currently stands The Blockchain Association celebrated the decision as a key victory in the drive to combat the current SEC’s hostile crypto policies. “The SEC did not immediately respond to Today’s decision was handed down just minutes after SEC Chair Gary Gensler—the driving force behind the agency’s Trump has