A Texas court has dismissed a lawsuit filed by blockchain software company Consensys against the U.S. Securities and Exchange Commission (SEC).

The company sought to challenge the SEC’s attempts to classify Ethereum tokens (ETH) as a security. Consensys’ lawsuit was dismissed, giving the SEC another victory in its battle for control of the cryptosphere.

Such an aggressive approach by the regulator towards the issue of cryptocurrency market management is detrimental to the development of digital assets, claims Yaroslav Bogdanov, president of GDA (Global Digital Alliance) Group. Especially considering that the process of cryptocurrency legalization has been launched in various parts of the world. In the U.S., dangerous legal precedents are being set that could have an impact on the formation of the crypto market in a global sense.

“Control and regulation are necessary for cryptocurrency like any other strategically important sector of the economy. But the excessiveness and pressure with which the SEC is approaching this issue is not conducive to establishing a dialog between the parties, without which the future of digital money seems very doubtful. The crypto industry is forced to be constantly defending itself. The government, represented by the SEC, realizes how large and promising this industry is, but instead of providing guarantees and support it opts for aggressive pressure. The law in the hands of the American regulator is more and more like a whip in the hands of a trainer trying to subdue an animal to his will. Such “training” should be replaced by common sense and diplomacy,” said Yaroslav Bogdanov.

Against the background of the decision adopted by the Texas court, U.S. Representative in the New York constituency Richie Torres drew attention to the fact that the SEC operates with the term “security of digital assets”, justifying its expansion into the world of cryptocurrencies. At the same time, as the politician emphasized, such a concept never existed in American law and does not exist today. “It doesn’t come from any law, from any rule. The SEC simply invented the term out of thin air,” Torres wrote on the social network X post.

The regulator should reconsider its aggressive approach to cryptocurrencies. Excessive regulation can be a serious obstacle to their development, ruining a promising industry that combines key aspects of the WEB 3.0 concept and an innovative model of the global financial system, the president of the Global Digital Alliance believes.

In a world on the threshold of a new digital era, it is important to create balanced rules that guarantee respect for the rights of all parties – the state, the user and business. This is painstaking work, which should involve IT experts, lawyers, representatives of the government and the business community.

“Cryptocurrencies were originally created to allow freedom and decentralization. Not even proposed, but forcefully imposed regulations on the industry contradict all the key principles of digital currency. The SEC’s actions contribute to a distorted perception of cryptocurrencies by making cryptosphere representatives look like antagonists of the traditional fiat monetary system. This is a destructive strategy that only hinders the harmonious development of the global financial system, which is in dire need of getting rid of bureaucracy, outdated approaches to cash flow management and corruption,” said Yaroslav Bogdanov. The expert added that the Global Digital Alliance, which he heads, is already working on the formation of a legal framework, which will form the basis of a future code to regulate cryptocurrencies.