18 States Sue SEC and Gensler Over Crypto Regulatory Overreach
18 States Take Action Against SEC's Overreach
Eighteen Republican attorneys general have filed a lawsuit against the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, for allegedly overstepping its authority in regulating the cryptocurrency industry. The lead attorney general, Russell Coleman from Kentucky, asserts that the SEC's actions represent an attempt to 'unilaterally wrest regulatory authority away from the States.'
Key Complaints About SEC Actions
The states argue that the SEC is infringing upon state rights to create and enforce their own digital asset regulations. They claim that this overreach chills innovative regulatory frameworks that could better protect consumers in the digital asset marketplace.
Gensler's Defense and Industry Reaction
In defense of the SEC's measures, Gensler stated earlier that numerous courts have upheld the SEC's enforcement actions, asserting the need for investor protections regardless of the form of the securities involved.
Future Implications for the Crypto Industry
With the upcoming President-elect, Donald Trump's expected victory, substantial shifts in the SEC's approach to digital assets might occur. Trump has shown a clear commitment to fostering a pro-crypto environment, promising to make the U.S. the 'crypto capital of the planet.' This could lead to a reevaluation of regulatory norms affecting the industry in the near future.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.