Republican state attorneys general have requested a federal judge to pause their lawsuit against the U.S. Securities and Exchange Commission (SEC) concerning its authority over crypto firms, pointing to a change in leadership within the SEC. Initially filed in November 2024, the lawsuit claims the SEC has overstepped its boundaries by taking legal action against crypto exchanges. The federal judge agreed to the pause, noting the potential for the new SEC chair, Paul Atkins, to alter the course of the case. The parties involved are to file a joint status report in 30 days. Additionally, the DeFi Education Fund and other groups have dropped a separate lawsuit against the IRS related to its DeFi broker rule, which was also seen as an overreach of authority. This decision follows the recent legislative actions taken by Trump to nullify the rule under the Congressional Review Act.

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