Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Thursday, February 22nd, and today we're talking about the SEC

getting sued. Before we get into that, however, if you are enjoying the breakdown, please go

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breakdown pod. Well, friends, a fun one to start today, a new exchange is taking the fight to the

SEC, suing the regulator in federal district court. Legilex, in collaboration with the Crypto

Freedom Alliance of Texas, filed a lawsuit against the regulator on Wednesday. The lawsuit claims

that the SEC does not have

the proper authority to regulate crypto assets and is asking for a declaratory judgment from

the court. The argument is the same we've heard before in numerous other crypto cases,

quote, that Congress has not provided the SEC with broad authority to regulate digital assets.

The filing also includes the familiar Howey test argument

that digital assets are generally not investment contracts because, quote, they do not involve

any kind of ongoing commitment on the part of the asset seller or developer to manage any common

venture for the asset buyer's benefit. According to the complaint, Legilex wishes to launch a new

crypto trading platform, but is concerned the SEC could pursue

enforcement action at a later date. Therefore, the new exchange is asking the court to confirm

that their platform is not an unregistered securities exchange, broker, or clearing agency,

and that the SEC has no jurisdiction over their activity. The complaint notes that the SEC

has, quote, refused to propose for public comment any regulations setting forth its view

...