18 States Sue SEC, Chairman Gary Gensler Over Crypto Crackdown

18 US states, led by Kentucky, have filed a lawsuit against the SEC and Chairman Gary Gensler, accusing the agency of overstepping its authority in regulating cryptocurrencies without authorization from Congress. The lawsuit targets the SEC’s use of lawsuits instead of clear regulations, which has negatively impacted the industry.

The states are asking the court to stop the SEC from suing more crypto companies and to stop treating secondary crypto transactions as “investment contracts.” The lawsuit comes as the Trump administration prepares to change leadership, promising a more crypto-friendly policy.