In a groundbreaking development for the cryptocurrency industry, Richard Heart defeated the SEC. The controversial founder of blockchain projects like HEX, PulseChain, and PulseX has emerged victorious in his legal battle against the U.S. Securities and Exchange Commission (SEC). The case, which drew massive attention across the crypto world, has sparked conversations about regulatory overreach, the definition of securities, and the future of decentralized finance (DeFi).
Richard Heart promised his followers a fight, and he delivered!
On 10 January 2024, Richard publicly stated ‘ I am fighting the SEC for your rights ‘
While he was accused by the majority of so-called crypto influencers of scamming his followers, he went and hired the most feared law firm Quinn EmanuelUrquhart & Sullivan, LLP. This victory is important for the whole crypto community, but it is very special for the HEX community and the people who sacrificed for PulseChain, PulseX. Without their support, this victory wouldn’t be possible.
The Lawsuit Against Richard Heart
The SEC filed a civil lawsuit against Heart in 2023, alleging that he and his associated projects violated securities laws. Central to the case were claims that HEX, PulseChain, and PulseX functioned as unregistered securities, with investors being misled about the nature of their investments and the use of funds.
Heart, known for his flamboyant persona and unapologetic defense of his crypto ventures, denied all allegations. He maintained that his tokens were not securities and that investors were not promised profits based on his efforts, key criteria under the Howey Test, the SEC’s benchmark for identifying securities.
The Legal Showdown
What made this case unique was Heart’s bold and strategic legal defense. His team challenged the SEC’s interpretation of the Howey Test, arguing that:
- HEX and related tokens were decentralized, with no common enterprise or expectation of profits from a central authority.
- The projects operated transparently on-chain, with all smart contracts visible and immutable.
- The SEC was applying outdated frameworks to a new and complex technology.
In a surprising twist, the court sided with Heart. The judge ruled that the SEC failed to prove the existence of a common enterprise or a reasonable expectation of profits based solely on Heart’s actions. The ruling emphasized that mere token appreciation due to community activity or network effects does not automatically equate to a security.
Implications for DeFi
This verdict marks a significant moment for the crypto space. It’s the first time a high-profile DeFi founder has successfully fended off the SEC on such grounds. Some key implications include:
Regulatory clarity: The ruling forces regulators to refine their approach when applying traditional financial laws to decentralized projects.
Investor confidence: A win for Heart might bolster confidence in other DeFi projects under scrutiny.
Empowered founders: The decision could embolden other blockchain innovators to stand firm against what they see as unjustified regulation.
Richard Heart’s Reaction
Richard Heart celebrated the win with flair. On social media, he declared the ruling a victory not just for himself, but for “freedom, innovation, and everyone who believes in financial sovereignty.” Supporters hailed him as a crypto trailblazer, while critics remained skeptical about the long-term sustainability of his projects.
Today the SEC notified the court that it “…does not intend to file an amended complaint…” and their deadline to do so has expired. The Court previously dismissed the SEC’s entire case. Richard Heart, PulseChain, PulseX, and HEX have defeated the SEC completely and have… pic.twitter.com/hKtUUQsPHn
— Richard Heart (@RichardHeartWin) April 22, 2025
The Road Ahead After Richard Heart Defeated the SEC
While this ruling is a major win for Richard Heart, it’s not the end of the story. The SEC may appeal, and other legal challenges could emerge. Nevertheless, the precedent set here could shift the balance of power between regulators and the decentralized world.
For now, Richard Heart has done what few in the space have. He’s beaten the SEC at its own game. And by doing so, he’s left an indelible mark on the history of cryptocurrency regulation.