According to PANews, a coalition of seven U.S. states has filed a court brief opposing the Securities and Exchange Commission's (SEC) attempt to regulate cryptocurrencies. Led by Iowa Attorney General Brenna Bird, the alliance includes Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma. The brief was submitted on July 10, arguing that the SEC's regulatory actions exceed its authority and could stifle innovation in the cryptocurrency industry.
The coalition contends that the SEC's 'power expansion' would not only hinder innovation but also harm the cryptocurrency sector and overstep its jurisdiction. They argue that the SEC's regulatory measures obstruct states' efforts to protect citizens from fraud and undermine the free market. The Iowa Attorney General's office emphasized that the SEC's actions to grant itself new powers without Congressional approval are illegal, stifling innovation and allowing fraudsters to operate unchecked.
The brief further explains that the SEC has violated the Administrative Procedure Act and the Major Questions Doctrine, urging the court to prevent the SEC from overstepping its bounds. The seven-state alliance maintains that typical cryptocurrencies do not fall under the investment contract category as defined by the Securities Exchange Act of 1934.