A digital asset startup, LEJILEX, and Crypto Freedom Alliance of Texas (CFAT) have sued the US Securities and Exchange Commission (SEC) for what they deem as “unlawful targeting” of digital asset businesses. The lawsuit was filed in the United States District Court for the Northern District of Texas on Wednesday.
LEJILEX, a Texas-based non-profit, is filing the lawsuit in anticipation of launching a digital asset exchange. The suit argues that the SEC has overreached in its regulatory approach to the crypto industry in recent years.
According to the complaint, the SEC has unlawfully asserted its regulatory authority over the crypto space in Texas and the United States. The platforms hope that the lawsuit will bring attention to the SEC’s misguided policy, which they believe harms law-abiding American businesses.
Mike Wawszczak, co-founder of LEJILEX, stated, “We wish we were launching our business instead of filing a lawsuit, but here we are.” The platforms also hope that the lawsuit will bring an end to the SEC’s overreach and provide clarity on the regulatory status of digital assets.
The SEC has faced criticism from the crypto sector and US lawmakers for its approach to crypto regulation. Despite losing some high-profile lawsuits, such as the one against Ripple where XRP was declared not a security, there is still no clear regulatory framework for the industry.
Some of the crypto exchanges that the SEC has charged with offering unregistered securities include Coinbase, Binance, Kraken, and Bittrex.
In conclusion, the lawsuit hopes to challenge the SEC’s regulatory overreach and bring clarity to the status of digital assets. The SEC has been charged with harming law-abiding American businesses, and the platforms hope to put an end to this through their legal action.
