U.S. Judges Suspend Cryptocurrency Regulatory Litigation Against SEC in 18 States

U.S. Judge Suspends 18 State Crypto Regulatory Litigation Against SEC On Wednesday, a U.S. federal judge agreed to suspend a lawsuit filed by 18 state attorneys general and a DeFi lobby group against the U.S. Securities and Exchange Commission (SEC) after noting that the SEC’s new leadership was in place. Last November, after Trump won the 2024 presidential election, the state attorneys general (all Republicans) filed the lawsuit together with the DeFi Education Fund. They accused the federal securities regulator of acting ultra vires when suing cryptocurrency exchanges. In a filing Wednesday, the SEC said the lawsuit could end after Paul Atkins was confirmed as the new body’s chairman. The judge ordered the parties to file a joint situation report within 30 days, but suspended all deadlines for 60 days. On Wednesday, another lawsuit filed by the DeFi Education Fund, the Texas Blockchain Council, and the Blockchain Association against the Internal Revenue Service (IRS) was also dropped. The lawsuit argues that the IRS’s DeFi broker rules exceed the agency’s purview. Trump last week signed a resolution passed by both the House and Senate under the Congressional Review Act to repeal the rule. In documents filed Wednesday, the parties said the lawsuit had become “moot” after Mr. Trump signed the resolution.