The SEC has withdrawn its appeal of the decision by the U.S. District Court for the Northern District of Texas vacating the Dealer Rule.

This news follows AIMA’s letter to Acting SEC Chair Mark Uyeda, urging the swift withdrawal of the appeal.

On January 17, 2025, the SEC appealed the District Court’s decision, one of the final actions taken by the prior administration.

AIMA CEO Jack Inglis said:  “We welcome the news of the SEC withdrawing its appeal of the decision vacating the ill-advised Dealer Rule.  Hedge funds managed by AIMA’s members are not dealers. They do not have customers – a requirement for determining whether a market participant is a dealer.  The court affirmed this view when we challenged the rule last year.  While the decision significantly reduces uncertainty and the potential for market disruption, we urge the Commission to review their existing enforcement practices with respect to the dealer definition so that they are consistent with the court’s ruling.”

Source: AIMA

MFA statement on SEC withdrawal of appeal of Dealer Rule decision

Withdrawing appeal will benefit markets, investors, and the economy

MFA issued the following statement in response to the U.S. Securities and Exchange Commission (SEC) withdrawing its appeal of the U.S. District Court’s decision to vacate the unlawful Dealer Rule.

“The SEC’s withdrawal of its appeal of the Dealer Rule decision is consistent with its historical interpretation of the securities laws. Withdrawing the appeal turns the page on the Gensler era at the SEC and benefits markets, investors, and the economy by decreasing business risk, the cost of capital, and systemic risk. As a next step, the SEC should review its application of the dealer definition in outstanding enforcement cases to ensure the Commission is not exceeding its statutory authority. MFA appreciates the SEC withdrawing its appeal and looks forward to working constructively on policies that strengthen U.S. capital markets, embrace alternative asset managers as important market participants, and drive economic growth.”– Bryan Corbett, MFA President and CEO 

Source: MFA