Breaking: 18 States Sue US SEC For Constitutional Overreach In Crypto Regulation

1 month ago 29

Eighteen US states have filed a lawsuit against the Securities and Exchange Commission (SEC), its commissioners, and the SEC Chairman, Gary Gensler, for unconstitutional overreach and unfair persecution of the cryptocurrency industry.

This lawsuit puts into sharp focus a simmering tension between federal regulators and state governments about the proper scope of regulation in the digital asset space.

18 States Sue US SEC Over Crypto Regulation Overreach

Eighteen US states filed a suit against the Securities and Exchange Commission and its Chair, Gary Gensler, alleging unconstitutional overreach in its crypto regulatory practices.

According to FOX News, the states complained that the SEC’s aggressive enforcement strategy usurps their right to oversee local economic policies. The states further asserted that the actions taken by the agency have disrupted the emerging crypto industry, which is a significant role player in many state economies.

SCOOP: 18 U.S. states have filed to sue the @SECGov and its commissioners, accusing them of unconstitutional overreach and unfair persecution of the #crypto industry under the leadership of agency chief @GaryGensler.

The lawsuit, signed by 18 Republican Attorneys General,… pic.twitter.com/wxOovuIRQH

— Eleanor Terrett (@EleanorTerrett) November 14, 2024

This lawsuit highlights growing tension between federal and state authorities over regulating digital assets in the United States. It also underscores discontent within the crypto sector about excessive and unclear federal interference, as noted by critics.

The plaintiffs include Kentucky, West Virginia, Iowa, Texas, Montana, Nebraska, Tennessee, Wyoming and others.

According to the legal complaint:

“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.”

Gary Gensler Faces Resignation Rumors Amid Crypto Backlash

Rumors began to circulate that SEC Chair Gary Gensler could resign as early as tomorrow amidst growing criticism for his regulatory approach toward the cryptocurrency industry.

In prepared remarks for a legal conference last week, Gensler reiterated what he says is “significant investor harm” in the crypto market. He said “the vast majority” of cryptocurrency tokens are deficient in appropriate use cases, reinforcing his stance on strict enforcement.

Speculation that Gensler is on the verge of resigning has only increased since his speech, which included the following parting words: “I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance.”

Former SEC official John Reed Stark has publicly called for SEC Chair Gary Gensler to resign, citing the need for a fresh approach to the agency’s cryptocurrency policy. Stark emphasized that ongoing investigations and regulatory initiatives targeting the crypto industry should be paused to allow for a smoother leadership transition.

The post Breaking: 18 States Sue US SEC For Constitutional Overreach In Crypto Regulation appeared first on CoinGape.

Read Entire Article