A federal judge agreed to put an ongoing trial between 18 state attorneys and a decentralized financial lobbying group against the US Securities and Exchange Commission (SEC) Wednesday after the parties noticed SEC’s new leadership.

The State Ags, all Republicans, filed the trial along with the Defi Education Fund in November last year after Donald Trump’s victory in the presidential election in 2024. They claim that the federal securities regulator had exceeded his authority in filing lawsuits against crypto exchanges. In Wednesday’s archiving, SEC suggested that Paul Atkins’ confirmation as the new agency chairman could end the trial.

“In support of the defendant, this case states that this case due to a management transition in Securities and Exchange Commission could potentially be resolved,” the archiving said.

The judge ordered the parties to submit a joint status report within 30 days, but held on all deadlines for 60 days.

Originally, the trial claimed that SEC’s enforcement measures were penetrating on state regulators’ capabilities of police digital asset companies within their own limits.

“Some states, for example, have adopted regulatory regimes for financial institutions focused on digital assets; others have demanded that digital asset platforms get money-transferring licenses and security bonds to guarantee liquidity,” the trial said.

“While state legislative approaches have varied in accordance with local needs, they have consistently endeavored to provide transparent and administered rules for the road. And Congress has repeatedly rejected proposals to give federal agencies broad legislative power over digital assets.”

Congress is expected to retrieve the law structure that can tackle the roles of federal regulators in overseeing crypto this year, and key committees have already begun to hold hearings.

Meanwhile, SEC has already dropped investigations and litigation on more than a dozen businesses and paused litigation against a few others.

IRS -Broker Rule

A separate trial filed by Defi Education Fund, Texas Blockchain Council and Blockchain Association against Internal Revenue Service was also dropped Wednesday. This lawsuit claimed that the IRS ‘Defi -Broker rule went beyond the authority of the agency.

Trump signed a common house and Senate resolution under the Congress Review Act, which canceled this rule last week – the first regulatory item relating to crypto that he signed as president.

In an archiving on Wednesday, the parties said the trial had become “Moot” following Trump’s signature of the decision.