18 states in the United States recently jointly sued the Securities and Exchange Commission (SEC) and Chairman Gary Gensler on the grounds that enforcement actions against the encryption industry involve "excessive expansion of government power."
18 state governments jointly sued to protest the SEC’s abuse of power and weakening of state power
According to FOX reporters, the lawsuit, signed by 18 Republican attorneys general, details how the agency has grossly overstepped its authority to regulate government regulation through enforcement of a $3 trillion industry, thereby infringing on states' rights to regulate their economies.
Without authorization from Congress, the SEC expanded its regulatory authority over the encryption industry through enforcement actions and attempted to take away the regulatory power of state governments without respecting the distribution of power.
Gensler takes tough stance, insists on anti-encryption policy
Even facing the pressure of the Trump administration coming to power and possible removal, Gary Gensler still made strong remarks at the annual securities regulatory meeting on 11/14. He even stated that many crypto assets still lack long-term value and practical applications. Similar situations have affected investment. Negative impact on people.
Potential successor emerges, new SEC chairman may be pro-crypto
Trump has previously publicly stated that if he takes office, he will replace Gensler and appoint a leader who is more supportive of the crypto industry. The candidate who is currently considered a possible replacement for Gensler is current SEC Commissioner Mark Uyeda, who once criticized Gensler's "enforcement first and regulation later" behavior towards the encryption industry. Another potential candidate is Dan Gallagher, legal director of securities broker Robinhood, who was a former SEC commissioner and actively fought the SEC’s legal action against Robinhood Crypto this year.
(The Trump administration may choose SEC chairman, Robinhood legal affairs will replace Gary Gensler)
Industry criticizes SEC policy, litigation costs as high as $426 million
According to the Blockchain Association, multiple enforcement actions initiated by the SEC against the crypto industry since 2021 have forced companies to pay up to $429 million in legal fees. Industry insiders generally believe that the lack of clear digital asset regulatory policies in the United States is one of the biggest challenges facing American developers.
The new government comes to power, and the prospect of encryption regulation raises expectations
With Trump's election and the new administration taking office in 2025, the market generally expects a major change in the regulatory direction of the SEC. This joint lawsuit by 18 states not only reflects the state government’s dissatisfaction with the unauthorized expansion of powers of U.S. federal agencies, but also highlights the industry’s urgent need for reasonable regulatory direction. The market is also looking forward to the new SEC chairman and is optimistic about the future direction of encryption policy.
(SEC’s political and business revolving door appears frequently, with many senior officials switching jobs to join law firms)
This article 18 states in the United States jointly sued the SEC and Gensler to protest the "excessive expansion of power" in encryption supervision. It first appeared on Chain News ABMedia.