- Cryptocurrency company Lejilex and the CFAT group have sued the SEC.
- They claim the agency exceeded its authority over digital assets.
Texas-based cryptocurrency company Lejilex and Crypto Freedom Alliance of Texas (CFAT), a group that advocates for responsible digital asset policy development in the region, have sued the U.S. Securities and Exchange Commission (SEC). This was reported by Reuters.
Both organizations said the regulator has exceeded its authority and asked the judge to rule that digital assets traded on exchanges are not securities, the report said.
According to reporters, Lejilex plans to launch a cryptocurrency platform to trade digital assets that the SEC recognized as securities in the case against Coinbase. Therefore, the firm wants the court to rule that listing tokens that are already available will not violate securities laws.
“We’d like to get our business up and running rather than file a lawsuit, but here we are,” said the firm’s co-founder Mike Wawszczak.
CFAT and Lejilex also said that “the SEC is wrong to categorize digital assets as investment contracts because they do not create permanent obligations between the creator and the purchaser.”
Earlier we reported that US financial institutions are demanding that the SEC revise the definition of cryptoassets.
