BY SRH
Kentucky Attorney General Russell Coleman is leading the lawsuit against the SEC, joined by attorneys general from Arkansas, Florida, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, and West Virginia.
Battle: 18 States Sue the SEC for Allegedly Illegal Crypto Regulation
According to the lawsuit, the SEC filed a number of enforcement proceedings against significant digital asset exchanges because they enable securities transactions involving a number of common tokens, making them unregistered brokers, clearing agencies, and securities exchanges.
According to the lawsuit, the SEC filed 20 enforcement actions against digital asset exchanges in the first quarter of last year, which was the most in a single quarter.
It declared, “The SEC’s broad claim of regulatory jurisdiction is untenable.” “The SEC’s regulatory overreach ultimately violates fundamental federalism and separation of powers principles.”
To stop the SEC from pursuing enforcement actions against digital asset platforms in the future, the states requested declaratory and injunctive relief.
War: 18 states sue the SEC for allegedly doing something illegal with crypto rules
The lawsuit said that the SEC took a number of enforcement actions against big digital asset exchanges because the deals they help make with a number of common tokens are securities deals, which means that the exchanges, brokers, and clearing agencies are not registered as securities dealers, exchanges, or clearing agencies.
The lawsuit says that the SEC took 20 enforcement actions against digital asset exchanges in the first quarter of last year. This was the most actions taken in a single quarter.
“The SEC’s broad claim of regulatory authority is untenable,” it said. “The SEC’s regulatory overreach goes against basic ideas of federalism and separation of powers,”
The states asked for declaratory and injunctive relief to stop the SEC from going after digital asset companies in the future.
The states and the study and advocacy group DeFi Education Fund filed the lawsuit. It named the SEC, its chairman Gary Gensler, and five commissioners as defendants.
In the case, it was said that the SEC was running a “illegal campaign of regulatory overreach” and interfering with state sovereignty by regulating the $3 trillion digital asset market.
Government ruins everything it touches.
