A Texas federal judge has struck down the SEC's expanded 'Dealer Rule', ruling that the agency overstepped its legal authority and acted in an 'arbitrary and capricious' manner. The rule sought to redefine 'dealer' under the Exchange Act to include certain trading firms and potentially crypto and DeFi participants. The lawsuit, filed by the Blockchain Association and Crypto Freedom TX, argued that the rule would have significant negative impacts on the crypto industry and decentralized finance (DeFi), potentially classifying decentralized exchanges and liquidity providers as brokers. The decision is seen as a significant victory for DeFi and the broader crypto community.