Republican-Led States Temporarily Halt Legal Challenge Against SEC Regarding Cryptocurrency Oversight

A coalition of states governed by Republican leadership has decided to suspend their ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC). The legal action was initiated to contest the SEC’s asserted authority over the cryptocurrency sector. This pause suggests potential behind-the-scenes negotiations or a strategic reassessment of the legal approach. The outcome of this case could have significant implications for the regulatory landscape of digital assets in the United States.

IRS broker rule

A separate lawsuit filed by the DeFi Education Fund, the Texas Blockchain Council and the Blockchain Association against the Internal Revenue Service was also dropped on Wednesday. This lawsuit argued that the IRS’ DeFi broker rule went beyond the agency’s authority.

Trump signed a joint House and Senate resolution under the Congressional Review Act nullifying this rule last week — the first legislative item addressing crypto that he signed as president.

In a filing Wednesday, the parties said the lawsuit had become "moot" after Trump’s signing the resolution.