Lejilex, a Texas-based crypto startup, has escalated its legal battle with the U.S. Securities and Exchange Commission (SEC), accusing the agency of overstepping its authority. The company is seeking a preemptive ruling from a Texas federal court to clear it from potential SEC enforcement before it launches its crypto exchange by the end of 2024.
In its Oct. 3 brief, Lejilex claimed that its platform would facilitate crypto transactions, not sell securities, and criticized the SEC’s attempts to regulate digital assets under traditional securities laws.
Lejilex argued that the SEC’s “massive regulatory land grab” aims to expand its power without justification.
The SEC, however, countered that the lawsuit seeks to declare that cryptocurrencies can never be considered securities, a stance the agency disputes. Lejilex co-founder Mike Wawszczak expressed frustration, stating, “We wish we were launching our business instead of filing a lawsuit, but here we are.”
This case reflects ongoing tensions between the crypto industry and the SEC, as companies seek clarity on regulatory boundaries.