The U.S. Securities and Exchange Commission (SEC) faces another lawsuit for its iron fist approach to cryptocurrency. On Thursday, over 18 U.S. Attorney generals (AGs), along with the DeFi Education Fund, filed a case against the SEC and Gary Gensler, accusing them of regulatory overreach on digital assets.
The AGs were from Kentucky, Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, and Florida. They claimed that the market is facing an “unlawful and unconstitutional” crackdown on the crypto industry.
The legal document was shared on the public forum by journalist Eleanor Terrett. It raised concerns over the SEC’s enforcement actions on the crypto industry and its impact on the States. The complaint read,
The Securities and Exchange Commission (SEC) has not respected this allocation of authority. Instead, without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions.
The AGs also requested the Court to prevent the regulatory body from filing charges in the future on crypto platforms to register as security exchanges, brokers, dealers, or even clearing agents. Elaborating on the grievance, the DeFi Education Fund stated that the digital economy could be made more accessible and efficient if the SEC is of support.
Joe Lubin Sees Bright Future for ETH under New SEC ChairFollowing the lawsuit, Gensler released a document stating that he was proud to serve at the SEC. The statement showed signs of resignation. If true, Gensler’s early resignation would be a victory not only for crypto but also for Trump. The president-elect had openly criticized Gensler during his campaigns.
