Federal Judge Overturns SEC Treasury Market Rules

A federal judge in Texas has struck down a crucial Securities and Exchange Commission (SEC) rule that would have mandated certain firms to register as dealers in the U.S. Treasuries market. The ruling, which has been criticized as a setback for regulatory oversight, was made by U.S. District Judge Reed O'Connor, who argued that the SEC overstepped its authority. This decision has been hailed by hedge funds that challenged the rule, claiming it was overly broad and could disrupt market trading. Legal experts note that this ruling reflects a broader trend of conservative courts curtailing regulations implemented during President Biden's tenure. The SEC may appeal the decision, as it continues to face opposition from financial industry groups. Critics argue that this ruling undermines investor protections and the integrity of financial markets.