18 U.S. States Sue SEC and Gary Gensler, Alleging Unconstitutional Overreach in Crypto Regulation

Nov 14, 2024, 08:07 PM

Eighteen U.S. states, including Kentucky, Nebraska, and Texas, have filed a federal lawsuit against the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, accusing the agency of unconstitutional overreach and unfair persecution of the cryptocurrency industry. The lawsuit was filed on Thursday afternoon in collaboration with the DeFi Education Fund, a crypto advocacy group aiming to prevent the SEC from "continuing its unlawful campaign of regulatory overreach" in crypto. Signed by 18 Republican Attorneys General, the suit alleges that the SEC has exceeded its regulatory authority under Gensler's leadership by implementing crypto regulations without proper Congressional oversight. The states assert that the SEC's actions constitute "gross government overreach" and have unfairly targeted digital assets, hindering innovation in the industry.