Eighteen U.S. states have filed a lawsuit against the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, accusing the agency of overstepping its authority in regulating the cryptocurrency sector ¹ ² ³. The states claim that the SEC's enforcement actions against crypto entities are an attempt to usurp regulatory authority from the states, disrupting local economic policies and hindering the growth of the crypto industry.
The lawsuit argues that the SEC's actions are unconstitutional and lack clear guidelines, creating a regulatory gray zone that burdens digital asset businesses and harms consumers ². The states involved in the lawsuit include Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Nebraska, Tennessee, and Wyoming.
In a related development, the New York State Supreme Court has ruled in favor of Greenidge Generation, allowing the company to continue its Bitcoin mining and power generation operations in New York ³. The court also permitted Greenidge to reapply for its Clean Air Act Title V Air Permit, which was previously denied.
Industry leaders are optimistic about the future of crypto regulation under the Trump administration. Joe Lubin, CEO of Consensys, believes that the ongoing legal battles between the SEC and crypto companies may diminish, with many cases potentially being dismissed or settled ³. Additionally, Scott Hartman, a U.S. prosecutor from New York, suggests that his office may scale back crypto-related cases.
