The U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its appeal in a case aimed at expanding the application of the 'dealer rule' to the cryptocurrency and decentralized finance (DeFi) sectors. This decision follows a November 2024 ruling by a Texas federal court that struck down the SEC's attempt to broaden the definition of a dealer to include crypto liquidity providers with over $50 million in capital. Under new leadership, the SEC's decision to drop the appeal reflects a change in its approach to cryptocurrency regulation. The agency had previously sought to enforce traditional securities laws on DeFi platforms and other crypto operations, but faced resistance from the industry. The dismissal of the appeal is seen as a victory for the cryptocurrency industry, with the Blockchain Association and Crypto Freedom Alliance of Texas (CFAT) having led the legal challenge against the SEC's rule.