Powell suppressed the development of the encryption industry, which disgusted many people in the encryption industry.

According to Wu, 18 U.S. states filed a lawsuit against the SEC and its commissioners, accusing the SEC of unconstitutional overregulation and unfair suppression of the crypto industry under the leadership of Chairman Gary Gensler.

The lawsuit was signed by 18 Republican state attorneys general, who said the SEC's "enforcement instead of regulation" approach seriously exceeded its authority and infringed on the state government's right to regulate its own economy.