Texas-based crypto miner Lejilex is suing the SEC over exchange-traded crypto

A legal battle arose when Texas-based cryptocurrency mining firm Lejilex, along with the Crypto Freedom Alliance of Texas (CFAT), took the US Securities and Exchange Commission (SEC) to court. The core of the dispute lies in the dispute over the SEC’s jurisdiction and regulatory authority in the area of ​​exchange-traded cryptocurrencies. As Reuters reports, this lawsuit aims to challenge the SEC’s stance and classify these digital assets as non-securities.

Lejilex, along with CFAT, argues that the SEC has no clear legal basis to regulate certain crypto assets in the way it is currently attempting to do. The Texas company is about to launch Legit.Exchange, a cryptocurrency trading platform. This platform plans to offer tokens, some of which the SEC previously identified as securities in legal actions against well-known exchanges such as Coinbase and Binance.

Mike Wawszczak, co-founder of Lejilex, expressed disappointment at having to take legal action, stating: “Instead of filing a lawsuit, but here we are.” He emphasized the company’s preference to focus on business development rather than litigation. The lawsuit challenges the SEC’s approach to defining cryptocurrencies as investment contracts, noting that these digital assets do not embody the ongoing obligations characteristic of securities.

This legal confrontation follows the SEC’s June 2023 lawsuits against Coinbase and Binance. Among the SEC’s allegations was the assertion that several tokens available on these platforms, such as Solana (SOL), Cardano (ADA), and Filecoin (FIL), are considered securities. Binance responded to these allegations by denying them, noting that the SEC’s actions were more aimed at asserting dominance over other regulators than protecting the interests of investors.

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