Texas Company, Lejilex, Sues SEC Over Crypto Asset Regulation

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Bittime -  A company in Texas, Lejilex, together with the Crypto Freedom Alliance of Texas (CFAT) suedthe United States Securities and Exchange Commission (SEC)regarding the regulation of crypto assets. This lawsuit was filed to obtain legal certainty regarding the status ofcrypto assetstraded on the secondary market.

Lejilex plans to launch a crypto asset trading platform called Legit.Exchange. They are of the view that sales of crypto assets in the secondary market through their platforms do not fall within the definition of “sale of securities” under the Exchange Act of 1934 and the Securities Act of 1933.

The lawsuit also asks the court to declare that Legit.Exchange is not an unregistered securities exchange, and Lejilex is not an unregistered broker or clearing house.

CFAT and Lejilex accused the SEC of implementing a new policy that deems nearly all crypto asset transactions to involve “investment contracts” under federal securities laws. They argue that this policy creates uncertainty and has the potential to harm industry players who comply with the rules.

Lejilex explains that Legit.Exchange is a non-custodial crypto asset trading platform that uses smart contracts to allow users to transact without needing to know each other's identities. Lejilex will control tradable assets and perform verification for fees, but will not have ownership rights over user assets.

This lawsuit also discusses at length the "Howey Test" which is used to determine whether an asset is a security. Apart from that, this lawsuit also refers to the Wahi case and the SEC's actions against LBRY, Binance, and various other parties.

This case attracted attention because it highlighted the debate regarding the regulation of crypto assets in the United States. The SEC is required to provide clarity regarding the criteria for crypto assets that are considered securities, while industry players want clearer and more consistent regulations.

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Crypto Regulation in Texas

To understand better, we will discuss crypto regulations in Texas in the following explanation.

In 2021, Texas became one of the states in the United States that experienced significant developments in terms of crypto regulation. This initiative is marked by several important steps taken by the state government and regulatory agencies in Texas to shape a more blockchain and cryptocurrency friendly environment. The following are some of the main aspects of crypto regulation in Texas.

1. Laws on Crypto and Blockchain

In 2021, Texas passed a series of laws designed to promote and clarify the usefulness of blockchain technology and cryptocurrencies. One such law is House Bill 1576 which regulates the use of blockchain technology in business and legal documents in the state. This creates a clearer legal basis for the use of blockchain in business transactions in Texas.

2. Banking Charter for Crypto Companies

In September 2021, Texas became the first state in the United States to grant a banking charter to a crypto company. This means crypto companies operating in Texas can become banks officially recognized by the state, giving them access to traditional banking infrastructure and increasing public trust in the crypto industry.

3. Introduction of Crypto in the Energy Sector

Texas is known as one of the largest energy production centers in the United States. In 2021, a number of energy companies in Texas began exploring the use of blockchain and crypto technology to increase efficiency and transparency in the energy supply chain. Moves like these indicate wider adoption of crypto technology in traditional sectors in Texas.

4. Digital Hedging

As the crypto industry grows, Texas is also introducing legislation to protect the rights of crypto users. One of them is House Bill 4474 which provides legal protection to crypto users from fraud and detrimental business practices.

5. Crypto Mining Supporter

Texas has played host to a large number of crypto mining companies, primarily due to its relatively low energy costs and favorable regulatory environment. This creates new jobs and increases economic growth in various regions in Texas.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. 

To be able to buy crypto assets on  Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements  of Bitcoin (BTC) ,  Ethereum (ETH ),  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.