Federal Judge Pauses Lawsuit by Republican States Against SEC on Crypto
A federal judge has paused a lawsuit involving 18 state attorneys general and a decentralized finance lobbyist group against the U.S. Securities and Exchange Commission (SEC). Key points include:
- The lawsuit claims the SEC exceeded its authority in actions against crypto exchanges.
- State AGs filed the suit after Donald Trump's 2024 presidential election win.
- The SEC's new chair, Paul Atkins, may influence the resolution of the case.
- The judge ordered a joint status report within 30 days and paused all deadlines for 60 days.
- The lawsuit argues SEC enforcement actions interfere with state regulators' oversight of digital asset firms.
- Congress is expected to address federal regulatory roles over crypto this year.
- The SEC has ceased investigations into several companies and paused lawsuits against others.
IRS Broker Rule
A separate lawsuit against the IRS regarding the DeFi broker rule was dropped. Highlights include:
- The lawsuit claimed the IRS exceeded its authority with the DeFi broker rule.
- Trump signed a resolution nullifying this rule under the Congressional Review Act.
- The parties stated the lawsuit became "moot" following Trump's signing.