Lejilex and the Crypto Freedom Alliance of Texas have initiated a lawsuit against the SEC, challenging the scope of its authority over cryptocurrency transactions.

The plaintiffs accuse the SEC of excessive enforcement and assert that Congress has not granted the agency wide-ranging control over digital asset regulation.

The legal battle aims to protect members from being wrongfully accused of violating securities laws due to the SEC's asserted overreach.

This lawsuit is a continuation of the broader industry pushback against SEC regulations, highlighting growing tensions between crypto firms and the regulator.

Lejilex's planned Legit.Exchange launch faces delays due to legal issues with major exchanges, amidst the backdrop of heightened SEC enforcement under Chairman Gary Gensler.

Texas, a hub for cryptocurrency activity, is concurrently dealing with environmental and noise complaints linked to the state's crypto mining operations.