Ahead of an expected transition in regulatory leadership following the election of Donald Trump, 18 states have filed lawsuits against the Securities and Exchange Commission (SEC) and the commissioner's chairman, Gary Gensler, over its actions against the crypto industry.
The suit filed Thursday, from 18 states and their respective attorneys general — all Republicans — along with the Diffie Education Fund, allege the regulator violates the U.S. Constitution in its approach to regulating digital assets.
“Without Congressional authorization, the SEC has attempted to wrest regulatory authority from the states through a series of enforcement actions targeting the digital assets industry,” the lawsuit, filed in federal court in Kentucky, alleges. “The SEC's assertion of regulatory authority is untenable.”
The suit further alleges that the SEC knowingly rejected standardizing practices under Gensler's leadership when entering crypto, and that the agency deliberately refrained from releasing any new crypto rules — to avoid cases of “unregulated land grabs.”
Editor's note: This story is breaking and will be updated with more details.
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