SEC Claims Lejilex’s Lawsuit Seeks to “Redefine Crypto as Non-Safety”

Crypto startup Lejilex and america Securities and
Change Fee (SEC) are engaged in a authorized battle over the classification
of cryptocurrencies. Each events have submitted competing briefs for abstract
judgment in a Texas federal courtroom.

Lejilex, which is a part of the Crypto Freedom Alliance of
Texas, filed its transient on October 3. The corporate argues that it intends to
facilitate crypto transactions and to not promote securities. In its submitting,
Lejilex accuses the SEC of overstepping its regulatory authority.

SEC Defends Stance on Securities

In its transient, Lejilex contends that the SEC seeks to broadly
classify asset gross sales as safety transactions. The corporate claims that the SEC
has maintained an method that enables for a “transformative
enlargement” of its regulatory energy with none limitations.

Conversely, the SEC argues that the lawsuit makes an attempt to
persuade the courtroom that cryptocurrencies ought to by no means be thought of securities.
The SEC has additionally raised the difficulty of standing, asserting that Lejilex has not
confronted any company enforcement actions towards it.

Earlier this 12 months, in February, Lejilex requested the courtroom
to find out that itemizing pre-existing tokens wouldn’t violate securities
legal guidelines. Co-founder Mike Wawszczak expressed frustration, stating: “We want we
had been launching our enterprise as a substitute of submitting a lawsuit, however right here we’re,” in
an interview with Reuters.

Crypto startup Lejilex has requested a Texas federal courtroom for a preemptive ruling towards SEC enforcement actions, claiming it facilitates crypto transactions, not securities, and accusing the company of regulatory overreach.

— The Crypto Information 🗞️ (@TCNCRYPTO) October 4, 2024

Coinbase’s Authorized Battle Continues

On October 4, Coinbase Chief Authorized Officer Paul Grewal
commented on the briefs in a submit on X (previously Twitter). He criticized the SEC’s stance, arguing
that the classification of a digital asset transaction mustn’t depend upon the
asset’s nature.

Grewal highlighted inconsistencies within the SEC’s arguments,
referencing a earlier case the place the SEC took a contradictory place.
Coinbase is currently involved in a lawsuit with the SEC, which claims the
exchange offered unregistered securities, a cost Coinbase denies.

Grewal emphasised the significance of consistency in
authorities actions, stating: “That is our authorities performing within the title of all
of us. Telling one decide one factor whereas telling one other the alternative ought to
not be tolerated. We deserve higher.”

This text was written by Tareq Sikder at www.financemagnates.com.

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