Seven US States filed an amicus brief against the regulatory overreach of the SEC.
The amicus brief argues that the SEC’s autocratic power thwarts US crypto lead and innovation.
The States question the SEC’s authority, claiming that Congress has not given the agency the power to regulate crypto.
A coalition of seven U.S. states, led by Iowa Attorney General Brenna Bird, has filed a legal brief challenging what they deem as regulatory overreach by the Securities and Exchange Commission in the cryptocurrency sector. The brief, submitted on July 10, argues that the SEC’s actions are stifling innovation and jeopardizing the country’s leadership in the crypto space.
Notably, Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma supported the amicus brief arguing that the SEC’s autocratic rule is hindering the country’s efforts to maintain its crypto lead.
US states like Iowa have been at the forefront of implementing strategic moves to tackle the increasing number of scams and frauds in the crypto market. However, they view the SEC’s rules as stifling innovation and damaging the crypto market. They argued that the agency’s authoritarian power over the crypto industry may hinder the states from protecting the public from crypto-related threats.
The brief further asserts that the SEC, under the control of the Biden administration, is abusing its power to take complete control of cryptocurrency, which is allegedly beyond its authority. In addition, the states posited that the regulators have violated consumer protection laws, leaving citizens without crypto-friendly norms.
Moreover, the amicus brief questioned the SEC’s authority to control cryptocurrencies. While arguing that Congress has not given the SEC “power to regulate cryptocurrency,” the states are requesting the court to prevent the agency from monopolizing the industry. The brief further posits that the SEC’s effort to provide itself with new powers, bypassing Congress, is illegal. The states argued, “Congress never gave the SEC power to regulate cryptocurrency, and there is no accountability to ensure the actions the SEC takes are legitimate and necessary.”
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