They allege that the SEC has violated the rights of states to regulate their economies.
The agency has committed “serious government overreach,” the lawsuit says.
This Wednesday, 18 US states filed a lawsuit against the Securities and Exchange Commission (SEC) and its commissioners, accusing them of unconstitutional overreach and unfair persecution of the cryptocurrency industry under the leadership of Gary Gensler.
The legal action was signed by 18 Republican attorneys general, who argue that the SEC has violated the rights of states to regulate their economies, according to Fox reporter Eleanor Terret.
The demand alleges that the SEC has perpetrated “serious government overreach” through its approach to regulation through enforcement against the cryptocurrency industry, which is valued at $3 trillion.
According to the text presented, these SEC actions have directly interfered in the sovereignty of the states to manage their own economic policies.
The attorneys general of Kentucky, Nebraska, Tennessee, Virginia, Iowa, Texas, Mississippi, Montana, Arkansas, Ohio, Kansas, Missouri, Indiana, Utah, Louisiana, South Carolina, Oklahoma and Florida; joined in this legal action.
The lawsuit contends that the agency has overstepped its limits in trying to regulate the cryptocurrency sector without explicit authorization from Congress, undermining the innovative regulatory structures that states are developing for this emerging sector.
This legal move comes at a time when the SEC appears to be on the verge of significant change. It has been reported that although President-elect Donald Trump does not have the ability to directly remove Gensler from office, there are indications that Gensler could be preparing his exit.
In a recent speech, Gensler adopted a farewell tone, mentioning that “it was a pleasure” to have served the federal agency, which has been interpreted by some as a sign of his possible retirement, as reported by CriptoNoticias.
The cryptocurrency industry has been under intensive scrutiny by the SEC, especially under Gensler, which has led to large economic costs for these companies, up to $400 million in some cases.
Prosecutors argue that the SEC’s “crusade of regulation through enforcement” has created an environment of uncertainty and slowed the development of a sector that many consider crucial to the country’s economic and technological future.
The lawsuit seeks both a declaration that the SEC’s actions are unconstitutional, and precautionary measures to stop what they consider to be unjust persecution.
The legal dispute could have profound implications for cryptocurrency regulation in the United States, especially if it results in a change in leadership at the SEC.
Gensler’s departure, if confirmed, could usher in a new era in how cryptocurrency innovation and regulation are approached in the country, potentially redefining the balance between federal regulation and state autonomy in the digital assets sector.
This article was created using artificial intelligence and edited by a human Editor.
