"Everyone must like it, yes, before this it was only the SEC that wanted to sue many parties."
Fort Worth-headquartered cryptocurrency firm Lejilex, which has joined forces with the Crypto Freedom Alliance of Texas (CFAT), has initiated legal proceedings against the Securities and Exchange Commission (SEC).
This is because the SEC exceeded the limits of its regulatory jurisdiction following taking control of the digital asset space without clear legal authority, therefore the claim was filed in the Fort Worth District Court of the United States (US).
The combination of Lejilex and CFAT also aims to request confirmation that digital assets are traded on such a platform as planned by Lejilex which wants to establish a crypto platform called Legit.Exchange not securities subject to its control.
The two firms have sought precedent that would allow the listing of previously existing tokens including those that the SEC has labeled as securities in its lawsuits against Coinbase and Binance without violating securities laws.
According to the plaintiffs, the SEC is not only an obstacle to business growth but also endangers the position of the US as an innovator in the digital asset sector following its treatment of crypto as an investment contract is too broad and has a strong legal basis.
It also claims that the SEC's assertion of substantial powers requires express approval from Congress, which support has been built on recent judicial precedent.
So here it can be seen that favorable results for Lejilex and CFAT may prompt a reevaluation of the SEC's regulatory approach while a decision in favor of the SEC's powers may confirm the regulatory status quo and strengthen the SEC's capacity to oversee the crypto market.
