Digital asset company LEJILEX, and a trade association, Crypto Freedom Alliance of Texas (CFAT), has filed a complaint against the Securities and Exchange Commission (SEC). The lawsuit challenges the SEC’s claim of authority to regulate most digital asset transactions in Texas and nationwide.Â
The complaint, filed in anticipation of LEJILEX launching a new digital asset trading platform, seeks confirmation that transactions on this platform are not securities sales requiring SEC registration. The complainant argues the SEC lacks legal power from Congress to control the digital asset industry.
According to the complaint, the SEC justifies ad hoc enforcement by categorizing all digital assets as investment contracts under SEC authority. The complainant seeks a court ruling that assets traded on LEJILEX’s platform are not securities. Defining these assets as investment contracts would allow unlimited SEC reach, potentially covering personal asset transactions like collectible sneaker resales.
Mike Wawszczak, LEJILEX Co-Founder, preferred to launch their business over suing but said SEC defrauded enforcement has paralyzed lawful digital asset companies.
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