US Cryptocurrency Companies and Industry Organizations Sue SEC, Alleging Overreach in Digital Assets
US cryptocurrency company Lejilex and the Cryptocurrency Freedom Alliance of Texas (CFAT) have filed a lawsuit against the US Securities and Exchange Commission (SEC) on Wednesday, alleging that the regulatory agency has exceeded its authority in regulating digital assets and requesting the court to rule that digital assets traded on exchanges are not securities. Lejilex argues that the SEC has exercised jurisdiction over the industry without "clear statutory authority" and asserts that classifying digital assets as "investment contracts" is erroneous since they do not establish a continuing commitment between creators and purchasers. They also request the court to apply the "major questions" doctrine, which allows judges to deem administrative actions with "significant economic and political implications" invalid unless explicitly authorized by Congress.
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