# SEC Dismisses Its Own Appeal Over Crypto "Dealer Rule"

*Author: Bankless*
*Published: Feb 20, 2025*
*Source: https://www.bankless.com/read/sec-dimisses-its-own-appeal-over-crypto-dealer-rule*

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The SEC has retracted its attempt to appeal a court decision that halted its enforcement of the 'dealer rule' on crypto liquidity providers with large capital reserves.

## **What’s the Scoop?**
- **SEC Appeal Withdrawn**: The SEC has submitted a motion to pull back its appeal against a court verdict that restricted its enforcement of the 'dealer rule' on crypto and DeFi stakeholders.
- **Focus on Crypto Firms**: The rule was aimed at compelling crypto liquidity providers with assets exceeding $50 million to adhere to existing securities regulations.
- **Implications for the Industry**: This move is perceived as a triumph for the crypto industry, underscoring the regulatory hurdles in the rapidly changing digital asset space.
- **Encouragement for Dialogue**: The withdrawal could pave the way for more meaningful dialogue between the SEC and the crypto community.