EddieJayonCrypto
15 Nov 24
Eighteen US states have sued the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, alleging unconstitutional overreach in regulating the cryptocurrency industry. The lawsuit highlights tensions between federal and state authorities over crypto regulation and includes claims that ...
Eighteen US states have sued the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, alleging unconstitutional overreach in regulating the cryptocurrency industry. The lawsuit highlights tensions between federal and state authorities over crypto regulation and includes claims that the SEC's actions violate states' rights and hinder innovation. Rumors of Gensler's potential resignation amidst criticism for his regulatory approach have also surfaced.
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. The lawsuit, signed by 18 Republican Attorneys General, underscores discontent within the crypto sector about excessive and unclear federal interference.
The lawsuit alleges that the SEC’s crusade against US-based cryptocurrency companies infringes on the principles of federalism and argues that applying antiquated federal securities laws to digital assets harms consumers by crowding out superior state-level protections that better suit the crypto market.
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. 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.