Gary Gensler Chairperson, U.S. Securities and Exchange Commission (Source: CoinGape
Leaders have criticized the SEC’s ambiguous policies, which have cost $426 million in litigation since 2021, according to the Blockchain Association.
Important Takeaways:
- 18 state attorneys general band together to sue Gary Gensler and the SEC.
- According to the lawsuit, the SEC overreached and violated federalism’s core principles.
- The crypto business has lost years of advancement and $426 million in fines because of the SEC’s enforcement actions.
The Securities and Exchange Commission (SEC) and its head, Gary Gensler, are being sued by 18 U.S. states for regulatory overreach in the cryptocurrency space.
Gensler’s office is accused of unconstitutional overreach and unjustly targeting the cryptocurrency business in the case, which was filed in the District Court of Kentucky.
18 States Sue the SEC for Excessive Crypto Regulation
States, including Nebraska, Tennessee, Texas, and Ohio, are leading the complaint, which alleges that the SEC has circumvented Congress. They contend that through its enforcement activities; the SEC has attempted to deprive the states of regulatory authority. The legal complaint reads:
“The Securities and Exchange Commission (SEC) has not complied with this authority delegation. Instead, the SEC has pursued a series of enforcement proceedings to unilaterally take regulatory authority away from the states without Congressional approval.
Source: X Post
The Blockchain Association claims that since 2021, the SEC’s many lawsuits against the cryptocurrency sector have cost the industry $426 million in litigation fees. The agency has come under fire from business leaders for lacking a clear strategy on digital assets. In the US, this is thought to be the largest obstacle developers must overcome.
Kentucky Attorney General Russell Coleman leads the action, which is also joined by attorneys general from Nebraska, Tennessee, West Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma, and Florida. The lawsuit was filed in collaboration with the DeFi Education Fund, a cryptocurrency advocacy organization.
Gary Gensler intensifies in response to Trump’s threats
Donald Trump U.S. President-elect (from The AP) (Source: Business Post
There is a common belief among investors and business leaders that the SEC’s leadership will change once Donald Trump is elected. When Trump takes office in January, this shift could happen sooner rather than later.
Several people are being discussed as successors for Gensler. SEC Commissioner Mark Uyeda is one of such people. Uyeda has been a vocal critic of Gensler’s compliance-through-enforcement strategy.
In October, Uyeda spoke with Fox Business on the regulatory climate surrounding cryptocurrency. He described Gensler’s policies as a disaster for the sector.
