US SEC Enters Legal Dispute With Lejilex

Lejilex, a new cryptocurrency company, is facing off against the United States Securities and Exchange Commission (SEC) in court. They have both filed papers in a Texas federal court, requesting a speedy ruling on how cryptocurrencies should be categorized.

According to the update, Lejilex is part of the Crypto Freedom Alliance of Texas. The company filed its legal brief on October 3. It argues that it intends to help people with cryptocurrency transactions and does not want to sell securities. Lejilex claims the Securities and Exchange Commission is going beyond its allowed authority.

Lejilex Believes The SEC Is Trying To Classify All Asset Sales As Security Transactions

Lejilex stated in its legal papers that the regulator is working to classify all asset sales as security transactions. The company feels that the agency aims to extend its regulatory power a lot without clear restrictions. This could change things for many cryptocurrency firms.

In contrast, the Securities and Exchange Commission argues that the lawsuit is meant to persuade the court that cryptocurrencies should never be treated as securities. The regulator also pointed out that Lejilex has not been targeted by any actions from the agency.

Earlier this year, in February, Lejilex requested the court to decide that listing existing tokens would not violate securities laws. Co-founder Mike Wawszczak expressed his frustration in an interview. He said the company’s team wishes it were launching its business instead of filing a lawsuit.

Lejilex is seeking a ruling from the Texas federal court to block any SEC actions against it. The company claims it only helps with cryptocurrency transactions and is not involved in selling securities. It has charged the regulator with overstepping its authority.

Paul Grewal, Coinbase’s Chief Legal Officer, Disagrees With The SEC Stance

On October 4, Paul Grewal, the Chief Legal Officer of Coinbase, shared his opinion on the matter. He took issue with the Securities and Exchange Commission’s view, saying that the type of digital asset should not determine how the transaction is classified.

Grewal revealed inconsistencies in the Securities and Exchange Commission’s arguments, referencing a past case where the agency took a different position. Coinbase is also in a legal dispute with the regulator, which claims that the exchange sold unregistered securities, a charge that Coinbase strongly denies.

Paul recently stressed the importance of consistency in government actions. He said the government represents all citizens and that it is not right to tell one judge one thing and another judge something different.

As the case continues, both parties will keep presenting their points, and the court will decide how cryptocurrencies should be labeled. According to the update, the decision could have a big impact on the future of cryptocurrency companies and their operations in the United States.