The Crypto Freedom Alliance of Texas (CFAT) and digital asset firm Lejilex have taken legal action against the US Securities and Exchange Commission (SEC), Reuters reported on Wednesday.
These have accused the regulator of overstepping its duties and asked a judge to rule that exchange-traded digital assets are not securities.
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The lawsuit was filed in the US District Court for the Northern District of Texas in Fort Worth on February 21. Lejilex, which plans to launch a crypto exchange called Legit.Exchange, is co-founded by Alliance DAO attorney and general counsel Mike Wawszczak.
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Both companies are seeking a court ruling that secondary market sales of digital assets, such as those Legit.Exchange seeks to facilitate, should not be classified as sales of securities under the Exchange Act of 1934 and the Securities Act of 1933.
They also contend that Legit.Exchange should not be considered an unregistered securities exchange and that Lejilex should not be considered an unregistered broker or an unregistered clearing agency for operating the exchange.