The digital asset company Lejilex has filed a lawsuit against the SEC, seeking a ruling on its secondary market sales

ChainCatcher news, according to Cointelegraph, the Texas Crypto Freedom Alliance (CFAT) and digital asset company Lejilex have sued the U.S. Securities and Exchange Commission (SEC), seeking a court ruling on the status of digital assets sold on the secondary market. It is reported that Lejilex is planning to launch a cryptocurrency exchange called Legit.Exchange. According to his LinkedIn profile, Mike Wawszczak, co-founder of Lejilex, is the attorney and general counsel for Alliance DAO.

The lawsuit presents a charge against the SEC and cites the Declaratory Judgment Act and a 2007 case as precedent. The plaintiffs request multiple rulings from the court, including that the secondary market sales of digital assets facilitated by Lejilex through Legit.Exchange are not sales of securities as defined by the Securities Exchange Act of 1934 and the Securities Act of 1933.

They also seek a declaration from the court that Legit.Exchange is not an unregistered securities exchange and that Lejilex will not become an unregistered broker or unregistered clearing agency by operating the exchange. The plaintiffs argue that "the SEC's recent enforcement actions have adopted a novel position that nearly all digital asset transactions involve 'investment contracts' under federal securities law."