US Blockchain Association Sues SEC Over Mandatory Crypto Dealer Registration

IconCrypto News Terminal23 Apr, 2024

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US Blockchain Association Sues SEC Over Mandatory Crypto Dealer Registration

The United States Blockchain Association (USBA) has filed a lawsuit against the Securities and Exchange Commission (SEC) over the agency's mandatory registration requirement for cryptocurrency dealers. The USBA argues that the SEC's rule is an overreach of its authority and will stifle innovation in the cryptocurrency industry. The SEC's rule, which was adopted in March 2023, requires cryptocurrency dealers to register with the agency and comply with a number of regulations. These regulations include requirements for dealers to maintain certain records, file periodic reports, and have their operations audited by an independent accounting firm. The USBA argues that the SEC's rule is unnecessary and duplicative, as cryptocurrency dealers are already subject to regulation by other agencies, such as the Financial Crimes Enforcement Network (FinCEN). The USBA also argues that the SEC's rule will make it more difficult for cryptocurrency businesses to operate in the United States, and will drive innovation offshore. Previously on 23 April 2024, the SEC announced a $10 million settlement with a cryptocurrency exchange for failing to register as a broker-dealer.

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