18 US states have filed a lawsuit against the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, accusing the regulator of overstepping its authority in the digital industry.
Lawsuit Against the SEC
States including Nebraska, Tennessee, Wyoming, and others claim that the SEC is violating the allocation of regulatory powers, seeking to unilaterally assert federal control instead of maintaining a balance with state authorities.
Financial Losses of the Industry
Under Gensler's leadership, the SEC has adopted an aggressive regulation by enforcement approach, forcing crypto companies to spend millions on lawsuits. According to the Blockchain Association, SEC actions have cost the industry $426 million since 2021.
Gensler's Criticism of Crypto
Despite criticism, Gary Gensler continues to criticize the crypto industry. In a recent speech, he stated that most crypto assets have not demonstrated sustainable use cases beyond speculation and possible illicit activities.
The lawsuit by 18 states highlights the ongoing tension between federal and state authorities regarding the regulation of digital assets in the US. The outcome of this case could significantly impact future cryptocurrency legislation.
