On February 20th, COINOTAG News reported that the U.S. SEC has opted to voluntarily retract an appeal pertaining to a crucial ruling that limits its jurisdiction over decentralized finance (DeFi). The motion, submitted to the U.S. Fifth Circuit Court of Appeals, indicated the SEC’s desire to “voluntarily dismiss this appeal,” a move that faced no opposition. A Texas federal judge’s November ruling determined that the SEC’s attempt to redefine the term “trader” was beyond its regulatory authority, highlighting that its adjustments improperly conflated DeFi participants with traditional financial brokers.
Kristin Smith, CEO of the Blockchain Association, hailed the SEC’s decision as a pivotal moment for the digital asset sector. In her statement, she emphasized that the dismissal marks a successful challenge against the SEC’s overreach in attempting to alter its statutory limits. She expressed optimism for enhanced communications between the crypto industry and the SEC, particularly under the agency’s new leadership.