A crypto industry group and a West Texas apparel company are suing the Securities and Exchange Commission, arguing the agency’s “poorly conceived” crypto policy needs to go through rulemaking.

The SEC under Chair Gary Gensler has effectively adopted a policy that most digital assets are securities subject to the agency’s oversight, but it never went through a formal rulemaking process, DeFi Education Fund and Beba LLC said in a lawsuit filed Monday.

The SEC has brought dozens of crypto-related enforcement actions, including a lawsuit against crypto exchange giant Coinbase Global Inc.

“That behind closed-doors policymaking approach deprived the digital asset …