According to Cointelegraph, a coalition of 18 U.S. states has initiated a lawsuit against the Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler. The lawsuit accuses the SEC of "gross government overreach" in its regulatory actions against the emerging cryptocurrency industry. The states involved in this legal action include Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, among others.
The legal complaint argues that the SEC has overstepped its authority by attempting to regulate the crypto industry without explicit Congressional approval. The states claim that the SEC has been trying to seize regulatory control from the states through a series of enforcement actions. This move has sparked significant concern among the states, which view it as an infringement on their rights to regulate within their jurisdictions.
The Blockchain Association has highlighted the financial burden these enforcement actions have placed on crypto firms. It reports that the industry's collective cost to combat the SEC's regulatory measures has reached $426 million. This substantial financial impact underscores the ongoing tension between the SEC and the crypto industry, which has been seeking clearer regulatory guidelines for digital assets.
This lawsuit marks a significant development in the ongoing debate over the regulation of cryptocurrencies in the United States. As the situation unfolds, further updates and details are expected to emerge, shedding more light on the implications of this legal battle for both the SEC and the crypto industry.