A federal judge agreed to suspend an ongoing trial between 18 attorney general prosecutors and a group of decentralized financial lobbyists against the American Securities and Exchange commission) on Wednesday, after the parties noted the new DIA management.
The AGS State, all the Republicans, filed the trial alongside the DEFI education fund last November after the victory of Donald Trump in the 2024 presidential election. They allege that the federal securities regulator had exceeded its authority in the deposit against the exchanges of Crypto. In Wednesday’s file, the SEC suggested that the confirmation of Paul Atkins as a new president of the agency could end the dispute.
“As support, the defendants say that because of a leadership transition in the Securities and Exchange Commission, this case could potentially be resolved,” said the file.
The judge ordered the parties to submit a joint report of state within 30 days, but took a break on time for 60 days.
Originally, the trial argued that the measures to apply the law of the SEC led to the capacities of the regulators of the State for police officers of digital asset companies within their own borders.
“Some states, for example, have promulgated regulatory schemes for financial institutions focused on digital assets; others have required digital asset platforms to obtain money transmitter licenses and security obligations to guarantee liquidity,” said the trial.
“While state regulatory approaches have varied in accordance with local needs, they have systematically endeavored to provide transparent and administrative rules of the road. And the congress has repeatedly refused proposals to give federal agencies a large regulatory power on digital assets.”
The congress should take the legislation on the structure of the market which can address the roles of federal regulators in the supervision of crypto this year, and the key committees have already started to hold hearings.
In the meantime, the SEC has already abandoned surveys and prosecution in more than a dozen companies and has paused for a few others.
IRS broker rule
A separate trial submitted by the DEFI education fund, the Texas Blockchain Council and the Blockchain Association against the Internal Internal Service were also abandoned on Wednesday. This trial argued that the IRS DEFI broker rule was going beyond the agency authority.
Trump signed a joint resolution of the Chamber and the Senate under the Congress Review Act announcing this rule last week – the first legislative element aimed at the crypto which he signed as president.
In a deposit on Wednesday, the parties said that the trial had become “aimless” after signing Trump’s resolution.
