AIMA welcomes the SEC decision to withdraw its Dealer Rule appeal.
Published: 19 February 2025
Today, the SEC has withdrawn its appeal of the decision by the U.S. District Court for the Northern District of Texas vacating the Dealer Rule.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 today’s 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.”