The objection as to the enforcement action is equally strong as the objection as to the remedy.

The TBA Rules were extraordinarily long in the making.  Following the financial crisis, the Treasury Markets Practice Group began a strong push for . The f on the topic dates to 2014.  

A good part of the reason for that was the complexity of their interaction with other rules, particularly the margin rules for other products, the capital rules and the custody rules.  The relevant complications are far from resolved: there is a good amount of both documentation and…

The SEC's failure for these many years to give any consideration to the development of a workable regulatory scheme for digital assets puts Congress in a bind. The Ripple case created further uncertainty as to whether the SEC even has jurisdiction over many digital assets. Now there is real pressure on Congress to adopt a digital asset framework, but the legislators must do so without the regulatory groundwork that should have been provided by the SEC.

One would assume the MFA would not threaten litigation unless a decision had been made to pursue that route if the SEC adopts the proposed rule in its proposed form. In addition to the SEC's proposal on private fund advisers, there are several other SEC rule proposals that would likely attract legal challenge, including, but not limited to, proposals on expanding the broker-dealer registration requirement and on climate-related disclosures.