From Nasdaq, Inc.:

The SEC’s relationship with the crypto industry has evolved over time, from benign neglect to active enforcement. Many crypto companies fear SEC enforcement actions, leading some to operate overseas. Lejilex filed a lawsuit against the SEC in Texas, arguing digital asset sales are not securities transactions, a move seen as impact litigation.

Impact litigation is a strategy to shape policy through court cases, with past successes in areas like civil rights. Courts can help correct misinterpretations by the executive branch or slow legislative action, an approach useful for the crypto industry. Recent court victories show the potential for impact litigation to influence crypto regulations.

The SEC’s perceived hostility towards crypto has led to industry uncertainty and fear. Many crypto companies are left with few options but to fight, flee, or fail. Lejilex’s decision to fight through litigation against the SEC is a bold move in a challenging regulatory landscape. Impact litigation may be slow and unpredictable, but it offers a path to challenge unjust regulations.

Read more at Nasdaq.com : In Lejilex vs. SEC, Crypto Goes on Offense in the Courts