{"id":11159,"date":"2025-04-17T11:32:30","date_gmt":"2025-04-17T09:32:30","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11159"},"modified":"2025-04-17T11:32:30","modified_gmt":"2025-04-17T09:32:30","slug":"lawsuit-against-sec-halted-by-us-court-following-leadership-transition-in-the-agency","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/17\/lawsuit-against-sec-halted-by-us-court-following-leadership-transition-in-the-agency\/","title":{"rendered":"Lawsuit Against SEC Halted by US Court Following Leadership Transition in the Agency"},"content":{"rendered":"

<\/p>\n

\n

A US federal magistrate has consented to suspend a lawsuit initiated by 18 state attorneys general and the cryptocurrency advocacy group DeFi Education Fund against the Securities and Exchange Commission after all involved parties expressed that new SEC leadership might render the case irrelevant.<\/p>\n

Kentucky District Court Judge Gregory Van Tatenhove mandated a 60-day hold on the matter on April 16, referencing a mid-March submission from the SEC that indicated \u201cthis case could potentially be resolved\u201d due to a leadership shift at the regulatory body.<\/p>\n

He remarked that the parties are required to submit a joint status update within 30 days.<\/p>\n

Paul Atkins<\/a>, a Wall Street consultant with previous board roles in cryptocurrency advocacy organizations, was inaugurated as the new SEC chair earlier this month, succeeding acting chair Mark Uyeda and taking over from Gary Gensler.<\/p>\n

The 18 attorneys general, all from Republican-led states, initiated the lawsuit<\/a> along with the DeFi Education Fund<\/a> against the securities agency in November, claiming that the SEC overstepped its jurisdiction when pursuing legal actions against cryptocurrency exchanges, accusing the agency and former chair Gensler of \u201csignificant government overreach.\u201d<\/p>\n

The plaintiffs included attorneys general from Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Indiana, Oklahoma, and Florida, among others.<\/p>\n

\u201cAbsent Congressional permission, the SEC has attempted to unilaterally seize regulatory power from the States through a continuous series of enforcement actions,\u201d the lawsuit asserted.<\/p>\n

Screenshot from filing ordering delay of proceedings. Source: <\/em>CourtListener<\/em><\/a><\/figcaption><\/figure>\n

DeFi groups withdraw case against IRS over rescinded broker rule<\/h2>\n

In another development, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council dismissed their lawsuit against the Internal Revenue Service on April 16.<\/p>\n

\u201cThe parties hereby agree to the voluntary withdrawal of this action without prejudice as the matter has become moot,\u201d stated the filing<\/a>.<\/p>\n

The lawsuit, submitted in December<\/a>, contended that the so-called IRS DeFi broker rule exceeded the agency\u2019s authority and was unconstitutional.<\/p>\n

Related: <\/strong><\/em>NY attorney general urges Congress to ensure pensions remain crypto-free \u2014 \u2018No intrinsic value\u2019<\/strong><\/em><\/a><\/p>\n

On April 11, President Donald Trump enacted a bill to eliminate the rule that would have mandated DeFi protocols to report transactions to the IRS.<\/p>\n

This occurs as the SEC has paused<\/a> or withdrawn several notable lawsuits against cryptocurrency firms this year under its new leadership.<\/p>\n

Magazine: <\/strong><\/em>Illegal arcade disguised as \u2026 a fake Bitcoin mine? Soldier scams in China: Asia Express<\/strong><\/em><\/a><\/p>\n