18 States Sue SEC, Accuse Gensler of Crypto Crackdown Overreach
18 states file a lawsuit against the SEC, accusing the agency of unconstitutional overreach.
In a bold legal move, 18 states, led by Kentucky Attorney General Russell Coleman, have sued the Securities and Exchange Commission (SEC) for alleged unconstitutional overreach in regulating the $3 trillion crypto industry.
🚨SCOOP: 18 U.S. states have filed to sue the @SECGov and its commissioners, accusing them of unconstitutional overreach and unfair persecution of the #crypto industry under the leadership of agency chief @GaryGensler.
— Eleanor Terrett (@EleanorTerrett) November 14, 2024
The lawsuit, signed by 18 Republican Attorneys General,… pic.twitter.com/wxOovuIRQH
The lawsuit, filed in a Kentucky district court, claims SEC Chair Gary Gensler’s crackdown on digital assets violates federalism and exceeds the agency’s jurisdiction.
The states argue the SEC’s actions harm one of America’s fastest-growing sectors by imposing penalties without a proper regulatory framework. This includes enforcement against major players like Coinbase, Kraken, and Ripple, which states claim undermines their rights to regulate local economies.
With President-elect Donald Trump’s pro-crypto stance and industry support, this lawsuit reflects growing resistance to federal control over digital assets. Gensler, however, defends the SEC’s authority to protect investors.
